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Proven design, creative financing make spar best platform choice.(Devils Tower's spar)

Publication: Oil and Gas Investor

Publication Date: 01-AUG-05
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COPYRIGHT 2005 Hart Publications, Inc.

Unlike the gold-filled caverns that early Indian legend said existed within the remains of an ancient volcano in Northeastern Wyoming, the gold beneath that impressive rock's namesake spar in the deep water of the Gulf of Mexico is no legend. Its riches have been located and defined using high-tech capabilities, and are now flowing to energy consumers.

The national monument rises above the sandstone cliffs of the Black Hills by an impressive 1,200ft (3,660m). In the Gulf of Mexico, Devils Tower riches flow through a massive floating structure connected to the ocean floor more than 5,600ft (1,708m) below.

From the U.S. Gulf Coast near New Orleans, it is more than 100 miles (161 km) into the Gulf of Mexico before the structure that hints of those riches is visible. The platform appears to grow larger as it nears. But even in the typical close-up view from a helicopter, most of the structure hangs out of sight below the water's surface.

The full measure of the Devils Tower spar--and the design and construction expertise that went into building and installing it--can only be appreciated by seeing it take shape. From the time the first weld is made, through shipment halfway around the world, to the upending and anchoring on location, installing a deepwater spar is an impressive accomplishment.

Getting to now

In less than a decade, the water depth in which floating spar platforms are installed in the Gulf of Mexico steadily marched from 1,930ft (589m), where Dominion E&P partnered with Kerr-McGee Corp. in the Neptune development to Devils Tower in 5,610ft (1,711m) of water. Neptune was the first spar in the Gulf, and for a time, Devils Tower was the deepest dry-tree platform in the world.

Any new Gulf of Mexico oil and gas development record is destined to be only temporary. Even though it no longer can claim a water depth title, Devils Tower is no less an achievement. It is another of Dominion E&P's contributions to the evolution of spar technology.

On June 16, 2003, the spar began the final leg of its trip, the 200-mile (322-km) tow to the well site in Mississippi Canyon Block 773. The 18-hour process of flooding the ballast tanks at the foot of the spar to upend it began at 8 a.m. June 24 and went according to plan.

In the meantime, work continued on the topsides module that was loaded aboard a barge and towed into position alongside the spar in late November. The mating of the module to the floating spar was completed Nov. 30.

Dominion E&P's 21-member production team, certified by the U.S. Coast Guard (USCG) to operate Devils Tower platform--considered a vessel--took command of the spar in February 2004 and production began May 5.

As expected for a project in record water depths, getting to that May 5 milestone was not easy. Along the path from sanction to full production, those building, installing and commissioning the Devils Tower spar...

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