New Lucius development shows gaining strength of the US Gulf

This week, US independent Anadarko Petroleum (NYSE:APC), super-major ExxonMobil (NYSE:XOM) and other project partners signed a unitization for the Lucius oil and gas field in the ultra-deepwaters of the US Gulf of Mexico.

Discovered in 2009, the Lucius oil and gas field spans Keathley Canyon Blocks 874, 875, 918 and 919, which had different project partners and differing operators, requiring a new break-down to move forward.

Following the unitization, Anadarko will serve as the operator of the Lucius field with 35 percent interest. Lucius partners include ExxonMobil with 15 percent, Plains Exploration and Production Company (NYSE:PXP) with 23.3 percent, Apache (NYSE:APA) with 11.7 percent, Petrobras (NYSE:PBR) with 9.6 percent and Eni (NYSE:E) with 5.4 percent interest.

The unitization moves the project one step closer to a project sanction on the development of the field, which is now expected for later this year -- a major vote of confidence for oil and gas operations in the US Gulf.

Development plans for Lucius call for a truss spar capable of processing more than 80,000 barrels of oil and 450 million cubic feet of natural gas a day.

Additionally, the Lucius project partners have signed an agreement with the partners on the Hadrian South field, to process the natural gas of the nearby field through the Lucius production facility -- making Lucius a production hub in the ultra-deepwaters of the Keathley Canyon.

Following the Deepwater Horizon accident and Macondo oil spill, and the subsequent permitting delays for drilling and development as regulators reorganized operations and requirements, the Lucius field development is the third major project to be announced for the US Gulf of Mexico.

Chevron's (NYSE:CVX) $7.5 billion Jack-St. Malo and $4 billion Big Foot developments have gotten the ball rolling on contract awards for oilfield service companies in the Gulf of Mexico. Additionally, deepwater drilling permits have been issued, and offshore men and women are getting back to work.

With the Lucius project sanctioning imminent, major projects are picking back up in the Gulf, showing operators are eager to continue working in the waters offshore the US.

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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.