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Devon Works to Restore Gulf Oil, Gas Production

June 7, 2006
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By Adam Wilmoth, The Daily Oklahoman

Jun. 7–ABOUT 90 MILES SOUTH OF LAFAYETTE, LA. “” Calm waters surround hundreds of unusually quiet oil and natural gas platforms in the heart of the Gulf of Mexico.

The typical roar of production equipment remains all but silent in Devon Energy Corp.’s Eugene Island Field more than nine months after hurricanes Katrina and Rita smashed through about 75 percent of the Gulf’s oil and gas infrastructure.

“I’ve never seen such destruction in all my life,” said Bobby Watzil, a Devon foreman and 32-year veteran of offshore oil and gas production. “Those pipes and iron and steel were just ripped apart.”

Eugene Island is one of the dozens of fields that have been offline since the storms blew across more than 3,000 Gulf production structures, destroying 113 and causing less-extensive damage to many more.

Most of the destroyed facilities “” including three Devon lost “” were built before 1979 when the U.S. Minerals Management Service required platforms to rest about 50 feet above the water surface.

A larger space between the water and the bottom of the platform “” known as “air gap”"” probably would have prevented much of the damage, said Greg Keller, Devon’s explorations manager.

“If the platforms were tall enough, the waves just rolled through the legs with no problems,” Keller said. “But if the platforms didn’t have sufficient air gaps, a tremendous force of water hit the side of the structure.”

Two Devon fields were knocked offline when the hurricanes destroyed platforms containing compressors and other equipment vital to transporting oil and natural gas to shore. New equipment is expected in September, and the fields are scheduled to return to operation in the first quarter of 2007.

While the wells currently are not producing, the fields are far from inactive. Crews have been working to repair the damage and improve the existing facilities.

In one of the most ambitious improvements, Devon is working to raise three of its existing production platforms by about 13 feet. When complete, the platforms would rest about 53 feet above the water’s surface.

The platforms are supported by metal legs that extend through about 250 feet of water and another 300 feet into the Gulf floor. Devon crews will raise the platform by installing hydraulic jack systems that will cut the existing legs, lift the platform up and fill the space with new pipe.

The lifting effort is scheduled for this fall and is expected to cost about $5 million per platform.

Air gap has been a key concern for the American Petroleum Institute, which recently released new guidelines that call for increased air gap on certain drilling rigs. The institute recently met with government and industry leaders to discuss improvements such as new anchor procedures for some floating facilities and other structural and procedural upgrades.

“API and the industry will continue to work closely with the government to learn from the recent hurricane experience,” Red Cavaney, the institute’s president and chief executive officer said Monday. “API’s publication of the first two recommended practices illustrates how the industry is moving ahead rapidly to draw upon our experiences last summer and be better prepared as hurricane season begins.

Besides improving Gulf infrastructure, energy companies also are upgrading their hurricane response plans.

“We have focused very heavily on the supplies and resources that would be available to employees,” said Russ Korbe, director of Gulf Coast operations at Tulsa-based Williams Cos Inc. “We have secured additional water supplies, staging areas, temporary living facilities, food sources and power generations.”

Last season’s hurricanes damaged several of Williams’ natural gas pipelines and processing facilities. Most were restored quickly, but the company’s Cameron Meadows natural gas plant in Cameron Parish, La., still is operating at just more than half of its capacity of about 500 million cubic feet per day. Full restoration is expected by September.

Like many of the still-offline Gulf facilities, Cameron Meadows is waiting for new equipment before the repairs can be completed. And Williams, like other companies in the area, is integrating improvements with its repairs, Korbe said.

Williams, Devon and many of the other affected Gulf energy companies are not expected to complete their repairs from last year’s hurricane season until after this year’s season is over. More large storms in the Gulf would only delay their work, industry leaders fear.

“But the meteorologists are telling us last year was worse than we will see this year,” Devon Superintendent Don Sands said. “Hopefully we’ll catch a break.”

The National Hurricane Center last month predicted up to 16 named storms this season, including six major hurricanes. Such a season would be more active than normal, but not as busy as last season.

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Copyright (c) 2006, The Daily Oklahoman

Distributed by Knight Ridder/Tribune Business News.

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