Williams Companies to provide services for Whale deepwater project
Aug 4 (Reuters) - Williams Companies Inc said on Wednesday it had reached an agreement with Shell Offshore Inc and Chevron USA Inc to provide offshore natural gas gathering and crude oil transportation services for the Whale development project.
Royal Dutch Shell last month announced plans to develop a new oilfield in the Gulf of Mexico. The Whale development, operated by Shell which owns 60% of the project, alongside Chevron Corp with 40%, is expected to reach peak production of around 100,000 barrels of oil equivalent per day (boed).
Whale, which was discovered in 2017, holds a recoverable resource of 490 million barrels of oil equivalent and is scheduled to begin production in 2024.
The agreement announced on Wednesday also includes Williams to provide onshore natural gas processing services for the Whale development located about 10 miles from the Shell-operated Perdido host facility.
Williams said it plans to expand its existing Gulf of Mexico offshore infrastructure via a 25-mile gas lateral pipeline build from the Whale platform to the existing Perdido gas pipeline and a new 125-mile oil pipeline to the existing Williams-owned GA-A244 junction platform.
The energy infrastructure company owns and operates 3,500 miles of natural gas and oil gathering and transmission pipeline, along with 1.8 billion cubic feet per day of cryogenic processing capacity and 60,000 barrels per day of fractionation capacity that span the Gulf of Mexico. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
