The firms will use the existing Tarantula production platform which is owned by Fieldwood to provide the transportation services
Genesis Energy expects the first deliveries of oil to happen in the second quarter of this year. (Credit: Pixabay/gloriaurban4)
Genesis Energy has signed agreements with Fieldwood Energy and two entities managed by Ridgewood Energy to offer downstream transportation services for the crude oil production associated with the deepwater Gulf of Mexico Katmai field development.
Production from the Katmai field development will be carried out through the existing Tarantula production platform, which is owned by Fieldwood.
Located in South Timbalier block 308, the platform is capable of processing approximately 25,000 barrels of oil each day from the Katmai field development, which is located in Green Canyon blocks 39 and 40.
The first deliveries of oil are expected in the second quarter of 2020
At present, the Tarantula platform is connected to Tarantula lateral, which is wholly owned by Genesis. Later, the crude oil will be delivered to the company’s 64% owned Poseidon crude oil system for delivery to shore.
The contracts for the Katmai field include life of lease dedications and no capital was required by Genesis to connect the Katmai production to its assets.
Furthermore, Genesis Energy expects the first deliveries of oil to happen in the second quarter of this year.
Genesis CEO Grant E. Sims said: “The dedication of the Katmai production is an exciting opportunity for us, and we look forward to working with Fieldwood, and the other interest owners, as they develop the Katmai fields.
“This project, which follows our most recent December announcement of the dedication by Murphy Exploration & Production Company – USA of its crude oil and gas production from its Khaleesi / Mormont and Samurai field developments, is yet another example that illustrates the strategic positioning of our offshore footprint and how our available capacity and multi-market delivery options will allow us to provide Fieldwood and other producers in the Gulf of Mexico with attractive transportation alternatives for many years ahead.”