Dominion Announces Partial Resumption of Gulf of Mexico Natural Gas and Oil Production
RICHMOND, Va. – Dominion (NYSE:D) announced Monday that
its Gulf of Mexico and South Louisiana production has reached approximately
130 million cubic feet of natural gas equivalent (mmcfe) per day.
Dominion facilities were not significantly damaged by the
storms. Production capability of approximately 570 mmcfe per day is still shut-in
primarily due to hurricane damage to downstream facilities not owned by Dominion.
Some Dominion facilities remain off line. At this time, Dominion
is not able to forecast with certainty when off-line production, whether interrupted
because of damage downstream or to its facilities, will resume.
Prior to Hurricane Katrina, Dominion’s Gulf of Mexico
and South Louisiana production was approximately 435 mmcfe per day. Dominion
had forecasted production increases to approximately 700 mmcfe per day during
October with the addition of four previously announced deepwater projects, plus
other planned completion activity.
Dominion Daily Gulf of Mexico and South Louisiana Production
Summary
mmcfe/d (per day)
Prior to Hurricane Katrina
435
Prior to Hurricane Rita
240
Expected September Prior to Storms
525
Expected October Prior to Storms
700
All volumes are approximate.
Until a significant percentage of production is resumed, Dominion
will post updated production
data at the beginning of each week on its Web site.
Dominion has business interruption insurance for hurricane-related
delays in natural gas and oil production. Production delayed by Hurricane Katrina
has a 30-day deductible period. Production delayed by Hurricane Rita has a 45-day
deductible period. Dominion’s business interruption insurance covers delays
caused both by damage to its own production facilities and by damage to third-party
facilities downstream. Despite production delays caused by these hurricanes,
the natural gas and oil reserves remain in the ground and are expected to be
produced by Dominion in the future.
Dominion is one of the nation's largest producers of energy,
with an energy portfolio of about 28,100 megawatts of generation, about 6 trillion
cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural
gas transmission pipeline. Dominion also operates the nation's largest underground
natural gas storage system with more than 965 billion cubic feet of storage
capacity and serves retail energy customers in nine states. For more information
about Dominion, visit the company's Web site at www.dom.com.
