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Enron Mail |
thanks for the update. have you gotten a price?
Doug Leach 01/25/2001 09:40 AM To: Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: Offshore crude fyi ---------------------- Forwarded by Doug Leach/HOU/ECT on 01/25/2001 09:40 AM --------------------------- From: Doug Leach 01/25/2001 09:36 AM To: Don Schroeder/HOU/ECT@ECT, Spencer Vosko/HOU/ECT@ECT, Robert Fuller/HOU/ECT@ECT, Patrick Danaher/NA/Enron@Enron cc: John L Nowlan/HOU/ECT@ECT, Peggy Rathmell/HOU/ECT@ECT, Bill White/NA/Enron@Enron Subject: Offshore crude Tom Byargeon, Kevin Miller and Ken Loch in ENA are working with producers in the US involved in deep water offshore Louisiana/Texas oil and gas drilling projects. This financing activity was primarily started to help ENA secure long term well head and pipeline natural gas supplies to supplement the gas trading desk activities. Just like what happened in Enron's initial VPP program they are find more interest in oil drilling projects rather than natural gas projects. They are currently working on a bid (due 1/31) for the Medusa project which involves Murphy (operator), Agip and Callon in Mississippi Canyon Blocks #538 and #582. The initial reservoir reports estimate reserves of 80-120 million barrels of sour crude and they estimate initial production to be 40,000 bpd starting in 1Q 2003. Quality is estimated to be a Mars type crude with 25-27 API Gravity and 1.5-2.0% sulfur. Plans are to build a private pipeline to Equilon's West Delta #143 platform and then bring the oil onshore. Peggy is finding out where WD #143 pumps to onshore. Tom's group would like to know if we have any interesting in buying the crude on either a fixed or floating basis. The floating could be tied to a Platt's index or the NYMEX. It is far too early to expect Murphy to enter into a physical or financial contract, but Tom hopes to get us first and/or last look from Murphy when the time is right. Another alternative is to give Murphy barrels at their 95,000 bpd Meraux, Louisiana refinery in exchange for the new production barrels. Could someone in your group please give me a notional non binding basis differential for this quality of crude for Cal 2003?
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