Anadarko, ExxonMobil to develop Lucius in the US Gulf of Mexico

By Phaedra Friend Troy

US independent Anadarko Petroleum (NYSE:APC), super-major ExxonMobil (NYSE:XOM) and co-owners have finalized a unitization agreement to develop the Lucius oil and gas field in the deepwaters of the US Gulf of Mexico.

Anadarko and its partners plan to develop the Lucius oil and gas field via a truss spar with the capacity to produce more than 80,000 barrels of oil and 450 million cubic feet of natural gas a day. With project sanction planned for later this year, Lucius production start-up is scheduled for 2014.

Discovered in 2009, the Lucius field is situated on Keathley Canyon Blocks 874,875, 918 and 919 in waters measuring approximately 7,100 feet deep.

A recent extended well test on Lucius produced at an equipment-constrained rate of more than 15,000 barrels of oil a day of 29-degree-API oil. The excellent reservoir characteristics and high flow rate indicate that Lucius can be developed with a minimal number of wells.

Following the unitization agreement, the Lucius project partners signed an agreement with the Hadrian South co-venturers to process Hadrian South natural gas via the Lucius facility for a production-handling fee and reimbursement for upgrading requirements to the facility. Located on Keathley Canyon Block 964, Hadrian South is operated by ExxonMobil.

"As a result of these agreements, we expect Lucius to be among the most economically efficient projects in our portfolio, while providing important infrastructure in an emerging area of the Gulf of Mexico," said Al Walker, Anadarko president and COO. 

Under the terms of the unitization, Anadarko will operate the unit with 35 percent interest. Lucius partners include ExxonMobil with 15 percent, Plains Exploration and Production Company (NYSE:PXP) with 23.3 percent, Apache (NYSE:APA) with 11.7 percent, Petrobras (NYSE:PBR) with 9.6 percent and Eni (NYSE:E) with 5.4 percent interest.

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