First production launched from Gulf’s deepwater Gunnison field

Petroleum News

The Gunnison field in the deepwater Gulf of Mexico has achieved first production ahead of schedule from one of three planned subsea wells, operator and 50 percent owner Kerr-McGee said Dec. 11. The other two wells are expected to begin production by year-end, the company said.

Daily production from all three subsea wells is projected at about 5,000 barrels of oil and 125 million cubic feet of gas by mid-2004, ramping up to about 30,000 barrels of oil and 180 million cubic feet of gas by year-end 2004 as seven dry-tree wells are completed, Kerr-McGee said.

The Gunnison facility, located in 3,150 feet of water in Garden Banks Block 668, has daily processing capacity of 40,000 barrels of oil and 200 million cubic feet of gas. The field itself covers blocks 667, 688 and 669.

“This excess capacity maximizes the efficiency of developing satellite prospects in the area,” 30 percent owner Nexen Petroleum said.

Cal Dive International holds a 20 percent stake in the Gunnison project, which was brought into production less than 26 months after the development was sanctioned.