Eni sanctions two new projects in the Greater Longhorn Area
Eni has sanctioned two new development projects named Longhorn Phase II and Appaloosa field in the Greater Longhorn Area (US Gulf of Mexico). The Greater Longhorn Area lies in the region of central Mississippi Canyon (MC), approximately 60 miles offshore Louisiana and also includes both the Eni-operated Corral Platform, previously known as Crystal Platform, and the Longhorn field currently under development. The development of Longhorn Phase II, sanctioned by Eni in December, 2008 with total investments of $112.9 million, provides for an additional subsea well that will be tied in to Corral Platform. Expected peak rate will range from 30 to 50 million standard cubic feet per day. The Longhorn gas development project, operated by Eni with a 75% interest and Nexen Petroleum USA Inc. with 25%, is located in MC Block 502 & 546 at a water depth of 2400'. Production at Longhorn is expected to start in July, 2009.
The nearby Appaloosa Unit, entirely held by Eni, consists of MC Block 459, 460 and a portion of MC 503 & 504 in 2,800' of water. Appaloosa unit development was sanctioned in December, 2008 with a total investment of $228.1 million. Oil processing capacity at Corral Platform will be upgraded to accommodate Appaloosa's first oil, which is expected to flow in January 2010 with a peak rate of 7,500 Bopd.
The Longhorn Phase II and Appaloosa development projects will provide Eni with a further opportunity to increase production and reinforce its operating presence in the Mississippi Canyon area. The Eni-operated Corral platform will become a significant oil and gas processing hub at the edge of the Shelf region in the Gulf of Mexico with further synergies available in the Greater Longhorn area from an appraisal campaign planned to commence in 2nd half 2009. Eni estimates that the potential of the Greater Longhorn Area in terms of reserves and exploration resources is approximately 100 million boe.
In the USA, Eni owns lease interests in 403 blocks in the Gulf of Mexico and is among the leading producers with a daily net production capacity in excess of 100,000 barrels of oil equivalent (60% operated). Eni is also present in Alaska, where it owns interests in 173 leases on the North Slope and is currently advancing with the development of the operated Nikaitchuq project.
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