Hess awarded Enbridge a contract to build, own, and operate a lateral pipeline estimated at US$130 million, to connect the Stampede development to an existing third-party pipeline system in the Gulf of Mexico.
Gulf of Mexico platform. From Hess. |
The Stampede crude oil pipeline will measure approximately 16mi. in length and 18in. in diameter. It will originate in Green Canyon Block 468, located approximately 220mi. southwest of New Orleans, Louisiana in about 3500ft water depth.
The pipeline is expected to be operational in 2018.
Enbridge says its offshore pipelines transport approximately 40% of the natural gas produced in the deepwater Gulf of Mexico, and 45% of ultra-deep natural gas production.
Stampede
Stampede is a joint development of the earlier Knotty Head and Pony discoveries. It is located in Green Canyon Blocks 468, 511 and 512, approximately 220mi. southeast of New Orleans, Louisiana, in 3500ft of water, and has a reservoir depth of 30,000ft.
In October, Hess announced it was moving forward with the $6 billion development after reaching a final investment decision. The plan initially calls for a total of six production wells and four water injection wells from two subsea drill centers tied back to tension leg platform (TLP), using a two-rig drilling program.
The deepwater subsea development will include gross topsides with the capacity to process about 80,000b/d and 100,000b/d of water injection capacity. Hess is estimating recoverable resources in the 300-350MMboe.
Last month, both Subsea 7 and Proserv scored Stampede contracts.
Proserv’s $20 million subsea contract is for the provision of a 12-well subsea control system along with associated topside and subsea interface equipment. The systems will be delivered to Hess in a phased approach throughout 2015 and 2016 in line with key project milestones.
Subsea 7 will perform installation work to support Stampede including the installation of flowlines, steel catenary risers, umbilicals, jumpers and associated subsea architecture, which tie-back two drill centers to a TLP hosting drill centers, water injection and gas lifts. Production will be via two 10in. flowlines from each drill center. The main offshore installation phase is expected to begin in 3Q 2016, and conclude in 1Q 2017.
Hess operates the Stampede Field with 25% interest. Partners includes Chevron’s subsidiary Union Oil Co. of California (25%), Statoil (25%) and Nexen Petroleum Offshore USA Inc. (25%).
Read more: