Conoco Signs Second Exploration Joint Venture Agreement in Deepwater Gulf of Mexico.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Oct. 18, 2001 Conoco Inc. (NYSE NYSE See: New York Stock Exchange :COC See chip on chip. ) has entered into a deepwater 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 exploration joint venture agreement with AEC AEC US Atomic Energy Commission Noun 1. AEC - a former executive agency (from 1946 to 1974) that was responsible for research into atomic energy and its peacetime uses in the United States Atomic Energy Commission Gulf of Mexico Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Alberta Energy Company Ltd. This follows an agreement signed in September with Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. USA Oil & Gas Inc., a wholly owned subsidiary of Norsk Hydro Americas Inc. The AEC and Norsk Hydro joint venture agreements overlap o·ver·lap n. 1. A part or portion of a structure that extends or projects over another. 2. The suturing of one layer of tissue above or under another layer to provide additional strength, often used in dental surgery. v. on several prospect areas. AEC has committed to participate, with working interests ranging from 12.5 percent to 15 percent, in four exploration wells to earn an interest in 26 exploratory leases held by Conoco. Also, AEC has the right to participate in six potential wells in 35 other exploratory leases, with working interests ranging from 12.5 percent to 25 percent. In addition, an option to participate in one shallow-water prospect at a 50-percent working interest is included, which covers two leases in 240 feet of water. The deepwater leases are located in water depths between 3,500 feet and 9,500 feet. Norsk Hydro has acquired a 25 percent working interest in five firm and three contingent exploration wells covering 55 exploratory leases held by Conoco. Additionally, Norsk Hydro has the option through 2005 to participate in wells on other select prospects currently held in Conoco's inventory, with working interests ranging from 12.5 percent to 25 percent. The leases covered are located in water depths up to 10,500 feet. "Our strategy upon entering the deepwater Gulf of Mexico in 1996 was to acquire large prospective acreage positions at high working interest levels and bring in partners with terms deemed favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to Conoco," said Gary Merriman, president, exploration production, U.S. and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . "We have now secured both our target working interest and cost interest levels in all exploration prospects included in these two agreements. The deepwater Gulf of Mexico continues to be a key growth area for Conoco." Conoco will remain operator of all the prospects it currently operates, retaining working interests that range from 25 percent to 60 percent in all the prospects included in the agreements. AEC and Norsk Hydro will provide funding that Conoco will use to offset its portion of the well cost. AEC and Norsk Hydro will have the option to place their employees as secondees to Conoco during the term of the joint venture agreements. "Both Norsk Hydro and AEC gain access to a mature, strategically positioned group of prospects while Conoco is fully compensated for developing that position," commented Glen Bishop, general manager, Gulf of Mexico Business Unit. Conoco and Norsk Hydro have existing business relationships in Norway, the U.K. and Russia. Conoco and AEC have an existing business relationship in Canada. Conoco is a major, integrated energy company active in more than 40 countries. |
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