Baker Energy to Operate El Paso Facilities.HOUSTON--(BUSINESS WIRE)--Nov. 17, 1999-- Baker Energy, a unit of Michael Baker Corp. (AMEX AMEX See: American Stock Exchange :BKR BKR Baker BKR Birkirkara (postal locality, Malta) BKR Breaker BKR Broadcast Key Rotation BKR Best-Known Recipe ), has been awarded a contract from El Paso Production Company to provide operations and maintenance services for their Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east (GOM) producing operations. El Paso Production Company, formerly known as Sonat Exploration Company, operates more than 50 manned and unmanned oil and gas production facilities throughout the GOM. Under this contract, Baker Energy will operate and maintain all of El Paso Production's properties located on the outer continental shelf In the federal United States, the Outer Continental Shelf (OCS) consists of the submerged lands, subsoil, and seabed, lying between the seaward extent of the States' jurisdiction and the seaward extent of Federal jurisdiction. . This contract has an expected annual value of $12 million. Baker and El Paso Production intend to negotiate an expansion of the contract that will assign all operational responsibility to Baker from the wellhead through the sales meter. This contract is part of an operations consolidation Baker is leading throughout the GOM. Baker is implementing a new operating model for the Gulf called OPCO OPCO Operating Company OPCo Ohio Power Company (SM). Under OPCO, Baker has built an infrastructure of supply boats, helicopters, shorebases, logistics, information technology systems and management personnel that facilitates sharing of resources and lowers costs for producers. "Consolidating operations under Baker gives our clients an opportunity to tap the resources they need, like helicopters and technical specialists," Don Fusilli fu·sil·li n. Pasta in short spirals or corkscrews. [Italian, from pl. diminutive of fuso, spindle, from Latin f  sus.] , president of Baker Energy, said. "OPCO creates an environment where we've improved efficiencies by spreading them across a greater number of facilities. The OPCO model applies economies of scale that achieve a step change reduction in operating costs for our clients that are difficult to achieve independently." "The alliance we have formed with Baker is part of our drive to continuously improve our cost structure while maintaining safe and compliant operations. We were impressed with Baker's operational and health, safety and environmental track record," said Bill Griffin, El Paso Production's vice president of operations and development. Michael Baker Corporation Michael Baker Corporation is an engineering and energy management corporation headquartered in the Pittsburgh suburb of Moon Township, Pennsylvania. Its headquarters is located in Airside Business Park, an office park near the Pittsburgh International Airport that the company (www.mbakercorp.com) provides engineering, management and operations services through its five business units: buildings, civil, energy, environmental, and transportation. |
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