TULSA, Okla.—The Williams Cos. announced June 17 that it has reached a tieback agreement with LLOG Exploration Offshore LLC to provide offshore natural gas and oil gathering and production handling services for the Taggart development at Williams’ Devils Tower Spar, 140 miles southeast of New Orleans in the Mississippi Canyon area of the Gulf of Mexico. In addition to gathering and production handling, Williams will provide onshore gas treatment and processing services to support the Taggart development.
“We are pleased to provide the full spectrum of midstream capabilities to another deepwater producer in the Gulf,” said Micheal Dunn, COO for Williams. “Interconnected unlike any other, our offshore and onshore infrastructure allows us to maximize value for our customers by providing a safe, seamless and efficient direct path to market. We look forward to serving LLOG and capturing the full value of these important deep-water resources for our nation’s economy.”
Williams will leverage its existing footprint and system capabilities to gather Taggart crude and natural gas production through Williams’ Mountaineer and Canyon Chief pipeline systems. The natural gas will be delivered to Williams’ Mobile Bay Processing Plant, and the NGL will be fractionated and marketed at the Baton Rouge Fractionator (Williams 33% owner) in Louisiana.
Taggart is expected to come online in early 2022, and the reserves are expected to produce approximately 27 million barrels over eight years.
U.S. shale producer Diamondback Energy said on Dec. 21 it would buy rival QEP Resources Inc. in an all-stock deal valued at around $2.2 billion.
The deal would create the largest pure-play northern Midland Basin E&P with a 73,000-net-acre position and 12,000 boe/d of production that is expected to more than double through 2020.
The March 20 lease sale in the U.S. Gulf of Mexico brought in $244.3 million in high bids.