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ConocoPhillips: Eagle Ford near pre-storm level

07 Sep 2017 22:15 (+01:00 GMT)
ConocoPhillips: Eagle Ford near pre-storm level

Houston, 7 September (Argus) — Independent oil and gas producer ConocoPhillips said output at its Eagle Ford basin operations in Texas is nearing pre-Hurricane Harvey levels.

Production in the Eagle Ford, which was on the path of the storm when it came ashore of 25 August, is running at over 90pc of its pre-Harvey level of 130,000 b/d of oil equivalent (boe/d). ConocoPhillips expects to fully return to that level in the next week or two, subject to third-party offtake access, it said in an update today.

As a safety measure, the company shut in its operated Eagle Ford production on 25 August and began to re-start operations on 27 August. But the pace and level of ramp-up in the basin has depended on various third party offtake and downstream constraints. It also resumed drilling and completion activities. The company's total lower 48 output in the second quarter was 448,000 boe/d.

Statoil said it expects its Eagle Ford output to reach pre-Harvey levels by early next week, "barring any unanticipated disruption in our downstream export capacity." Statoil second quarter output from the Eagle Ford was 30,000 boe/d.

But fellow independent Chesapeake has yet to quantify the impact of Harvey on its Eagle Ford operations, where it has about 20pc of its output currently shut in. The company produced 100,000 boe/d in the basin, out of a total output of 528,000 boe/d, in the second quarter.

Chesapeake did not sustain any "significant damage" to equipment and assets but operations may be impacted for the next few weeks as it gets "everything lined back up from not only our wells producing but also through the entire midstream and downstream chain," chief executive Doug Lawler said on 5 September.

Yesterday, EOG Resources, one of the largest producers in the Eagle Ford, lowered its third quarter US crude oil and condensate output guidance. It cut the midpoint by 15,000 b/d to 320,000-330,000 b/d. But it kept the full year guidance unchanged at 332,000-338,000 b/d.

US domestic oil production declined by 749,000 b/d to 8.8mn b/d, latest US Energy Information Administration (EIA) data showed, largely as producers shut in or pared back onshore and offshore Gulf of Mexico operations. US output has held steady above 9.2mn b/d since end-March.

US oil and gas producers are now preparing for Hurricane Irma as it approaches through the Caribbean. BP has begun securing offshore facilities and is evacuating non-essential personnel from its Thunder Horse platform in the deepwater Gulf of Mexico.

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