Eni starts production of the Longhorn gas field, located in the Gulf of Mexico

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2 November 2009

Eni has started production from its Longhorn gas field located in the Gulf of Mexico, Mississippi Canyon Blocks 502/546, 60 miles off the Louisiana coast.

Eni operates the Longhorn field with a 75% working interest, while Nexen holds the remaining 25%. The field will initially produce gas at a rate of approximately 200 million standard cubic feet of gas per day from four subsea wells in water depth of 2,500 feet which are connected to the Eni-operated Corral platform, previously known as Crystal.

The platform is a conventional jacket structure located in MC Block 365 about 20 miles northwest of the field in 620 feet of water depth. It has been fitted with a newly built production and compression facility with a processing capacity of 250 million standard cubic feet of gas per day and 6,000 barrels of oil per day.

The Longhorn project achieved its first production in just over 3 years from the initial exploration discovery made in July 2006, and was completed in less than 2 years from the sanction.

In addition to the Longhorn field, the Corral platform is being outfitted to increase liquids production capacity up to 12,000 barrels per day to accommodate the future tie-in of the Appaloosa oil field (Eni 100%), now under development with production anticipated to start in 2010.

In the USA, Eni owns lease interests in 376 blocks in the Gulf of Mexico and is among the leading producers with a daily net production capacity in excess of 100,000 barrels of oil equivalent (60% operated). Eni is also present in Alaska, where it owns interests in 172 leases between offshore and the North Slope and is currently advancing with the development of the operated Nikaitchuq project.

This year Eni joined Quicksilver Resources Inc., an independent US natural gas producer, in the development of the "Alliance Area" with the acquisition of 27.5% interest. This area produces unconventional gas (shale gas) from the Barnett Shales in the Fort Worth Basin.

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