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ConocoPhillips makes second discovery in Gulf March 29, 2013
ConocoPhillips makes second discovery in Gulf
ConocoPhillips of Houston has announced another oil discovery in the deepwater portion of the Gulf of Mexico, with its WR98-1 Coronado wildcat exploration well encountering more than 400 feet of net pay, or the net thickness of an oil reservoir able to produce hydrocarbons.
“The exciting results from the Coronado and Shenandoah discoveries confirm the value of our portfolio in the Gulf of Mexico and provide visibility on our future plans to grow through organic exploration,” said Larry Archibald, senior vice president for exploration, commenting in a news release.
On March 19, the company announced an oil discovery at the WR51-2 Shenandoah appraisal well near the Coronado site that encountered more than 1,000 feet of net pay in high-quality lower tertiary-aged reservoirs. ConocoPhillips holds a 30 percent working interest in Shenandoah.
The Coronado well, located in Walker Ridge Block 98, was drilled to a total depth of 31,866 feet, in 6,127 feet of water. The well is located about 190 miles off the Louisiana coast and about 12 miles southeast of the Shenandoah discovery.
ConocoPhillips holds a 35 percent working interest in Coronado. Other co-owners are Chevron Corp., an operator holding a 40 percent working interest; a subsidiary of Anadarko Petroleum Corp., 15 percent; and Venari Offshore LLC, 10 percent.
ConocoPhillips is the world’s largest independent exploration and production company based on production and proved reserves. It had operations and activities in 30 countries, $58 billion in annual revenue, $117 billion of total assets and about 16,900 employees as of Dec. 31. More information is available at www.conocophillips.com.
Technology planned to help Exxon operation meet emission limits
Technological innovation will help ExxonMobil Chemical Co.’s planned chemical expansion at Baytown near Houston operate within Texas’ emission limits, according to Steve Pryor, president of ExxonMobil Chemical, a subsidiary of Irving-based ExxonMobil Corp.
“Reducing environmental impact has been an ongoing strategy at Baytown,” said Pryor, commenting this month at the IHS World Petrochemical Conference in Houston.
In the past decade, Pryor said, more than $1.3 billion in environmental upgrades have been invested at the site to improve air quality and achieve double-digit improvements in energy efficiency.
Newly announced plans include a multi-billion-dollar steam cracker, a petrochemical facility that reduces the size of molecules from oil and natural gas into smaller ones. Other plans call for expanding premium polyethylene production at the Baytown site, which is already the country’s largest integrated refining-chemical complex, Pryor noted.
The Houston area would benefit from $870 million per year in increased economic activity, including about 10,000 jobs at the peak of construction and 3,800 permanent jobs, Pryor said.
ExxonMobil Chemical Co. is a petrochemical company with worldwide manufacturing, technology and marketing operations. More information is available at www.exxonmobilchemical.com.
Energy Transfer Partners acquires interest in ETP Holdco Corp.
Energy Transfer Partners LP and Energy Transfer Equity LP, both of Dallas, have announced that the former company will acquire from the latter its interest in Energy Transfer Partners Holdco Corp. for $3.75 billion in cash and Energy Transfer Partners common stock units.
ETP Holdco was formed by Energy Transfer Partners and Energy Transfer Equity in 2012 to own equity interests in Southern Union Co. and Sunoco Inc. The newly announced acquisition means Energy Transfer Partners will own 100 percent of ETP Holdco.
The deal is expected to close in second-quarter 2013, subject to customary closing conditions.
In exchange for interest in ETP Holdco, Energy Transfer Equity will receive $2.35 billion in newly issued Energy Transfer Partners common units and $1.4 billion in cash. Energy Transfer Equity, which owns the general partner and incentive distribution rights of Energy Transfer Partners, has agreed to forgo all incentive distribution rights payments on the newly issued Energy Transfer Partners units for the eight consecutive quarters beginning with the quarter in which the closing of the transaction occurs, and 50 percent of IDR payments on the newly issued Energy Transfer Partners units for the following eight consecutive quarters.
Energy Transfer Partners LP owns and operates natural gas operations including about 24,000 miles of gathering and transportation pipelines, treating and processing assets, and storage facilities. More information is available at www.energytransfer.com.
Jim Hayes named managing
director, Cirro Energy
Cirro Energy Group Inc. of Plano has named Jim Hayes as managing director, effective immediately.
Hayes, director of Dominion Energy Marketing Inc., a subsidiary of Dominion Resources Co. of Richmond, Va., succeeds Mike Rose and will be responsible for directing Cirro Energy’s Texas growth.
Rose has accepted a job with Dominion’s joint venture, Blue Racer Midstream, where he will serve as chief administrative officer on loan from Dominion. Rose will work at Blue Racer’s headquarters in
“Jim Hayes’ strong grasp on the intricacies of the complex wholesale energy market is a rare and significant talent,” said Kathy Curtis, vice president of retail with Dominion, commenting in a news release.
“Jim’s expertise will keep Cirro Energy financially sound while we implement programs that offer solid value to our growing base of customers,” Curtis said.
Hayes has served the energy industry for almost 20 years. Before joining Dominion, he was an oil broker with United Fuels Inc. for more than a decade.
“The leadership team has proven they can deliver on that promise,” Hayes said. “I’m excited to build upon their success and reach new customers while strengthening ties to those who have already chosen Cirro Energy as their electricity
Cirro Energy, a subsidiary of Dominion Resources, provides energy needs for residential and commercial customers throughout Texas. More information is available at www.cirroenergy.com.
Sunoco Logistics announces
binding open season
A binding open season for Sunoco Logistics Partners LP’s Mariner South Pipeline has begun, with the pipeline built to move propane and butane from Lone Star NGL LLC’s storage and fractionation complex in Mont Belvieu near Houston to Sunoco Logistics’ terminal in Nederland in southeast Texas.
In addition to export-grade propane and butane, the pipeline will be available for other natural gas liquids and petroleum products pending shipper interest.
Initially, the pipeline will be able to transport about 200,000 barrels per day but can be adjusted to support higher volumes as needed. The pipeline is expected to reach operation by the first quarter of 2015.
Subject to the terms of the open season, priority service will be available to shippers making long-term volume commitments during season. More information is available at www.sunocologistics.com/marinersouth.
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