Capsized Typhoon platform in USG may be 'total loss':Chevron exec

Capsized Typhoon platform in USG may be 'total loss': Chevron exec

Houston (Platts)--12Oct2005

Chevron's president of its North American operations, Ray Wilcox, warned
Wednesday that the capsized Typhoon production platform in the Gulf of Mexico
"may be a total loss."
     Nevertheless, Wilcox said the company plans to resume production at the
field as soon as possible.
     "There will be parts usable and some salvage value to it, but it may be a
total loss," said Wilcox during a brief interview after a presentation here to
a monthly meeting of about 200 industry leaders sponsored by the Independent
Petroleum Association of America.
     Wilcox said salvage assessments are under way and added: "It could be
sold for scrap."
     He could provide no target timeline for assessment, and said Chevron
would evaluate the remaining reserves at Typhoon before determining the best
method for resuming production there.
     "We will develop a definitive plan for salvage and still have subsea
inspections to do," said Wilcox.
     He could not provide a financial value for the tension leg platform,
which was found capsized about 70 miles from its location in 2,000 feet of
water at Green Canyon 236-237 after Hurricane Rita landed Sep 24 on the
Texas-Louisiana border.
     Typhoon began production in 2001 with a design for 40,000 b/d of oil and
60,000 Mcf/d of gas.
     Wilcox could not provide a figure for remaining reserves at the field
served by Typhoon, but said the company definitely plans to continue
production there.
     He said the Typhoon platform was easily the largest Chevron facility lost
to the pair of storms that savaged the Gulf of Mexico this season.
     During his presentation, Wilcox displayed photos of the capsized facility
and told the audience: "The cables broke loose, it flipped over and stopped
when the helicopter deck hit the mud. We have our hands full. We will work
with the original designers to salvage the facility and then see how to
restart production."
     Wilcox said the company's investigation continues into the cause of the
mishap.
--Gary Taylor, gary_taylor@platts.com

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