Leviathan Gas Pipeline Partners Announces Agreement with Shell, Exxon, and Amoco

Strategic Insights -

Leviathan Gas Pipeline Partners, a publicly owned limited partnership, has entered into an agreement with the working interest owners of the Ram-Powell field, located in the Viosca Knoll area offshore Louisiana. The agreement involves connecting a tension leg platform, to be located on Viosca Knoll Block 956, to Leviathan's shelf-based platform on Viosca Knoll Block 817. Leviathan will provide pipeline-related services for the Ram-Powell working interest owners on the VK 817 platform. The initial production from the Ram-Powell field is expected to commence in mid-1997, with gas production dedicated to Leviathan's 50% owned and operated Viosca Knoll Gathering System for transportation to multiple interstate markets.

Key Takeaways:

  • Leviathan Gas Pipeline Partners has entered into an agreement with Shell, Exxon, and Amoco to connect a tension leg platform to its shelf-based platform in the Viosca Knoll area offshore Louisiana.
  • The agreement involves providing pipeline-related services for the Ram-Powell working interest owners on the VK 817 platform.
  • Leviathan anticipates the initial production from the Ram-Powell field to commence in mid-1997.
  • Gas production from the Ram-Powell field will be dedicated to Leviathan's 50% owned and operated Viosca Knoll Gathering System for transportation to multiple interstate markets.
  • Leviathan's platform will serve as a combination drilling/production platform and a location for future compression facilities for the efficient expansion of the Viosca Knoll Gathering System.
  • Leviathan operates or has interests in nine pipeline systems located offshore Louisiana and Texas, gathering approximately 2.5 billion cubic feet of natural gas per day.
  • Grant E. Sims, president of Leviathan, stated that the agreement is a validation of the company's business strategy of supplying multi-purpose infrastructure to producers in the Flextrend and Deepwater areas of the Gulf.

Statistics:

  • 2.5 billion cubic feet of natural gas per day is being gathered by Leviathan's pipeline systems.
  • The Ram-Powell field is located in the Viosca Knoll area offshore Louisiana.
  • Viosca Knoll Block 956 and Viosca Knoll Block 817 are two separate locations for the tension leg platform and Leviathan's shelf-based platform, respectively.
  • The initial production from the Ram-Powell field is expected to commence in mid-1997.
  • 50% of the Viosca Knoll Gathering System is owned and operated by Leviathan.

Sources:

  • "HOUSTON, July 26 /PRNewswire/ --"
  • Leviathan Gas Pipeline Partners, L.P. (NYSE: LEV)