Capital cost for the project, which is expected to begin production around the end of 2017, is estimated at $14 billion, according to a press release. The platform is being designed for daily production of 150,000 barrels of oil.
Plains Exploration & Production (NYSE:PXP) plans to start drilling at a highly prospective play off the coast of Morocco.
It will make a $15-million cash payment to buy into the 2.7 million-acre Mazagan license area off the coast of Morocco. The company said an independent audit determined that the area may contain more than 7 billion barrels of prospective recoverable resources.
Plains will serve as operator of the license area outlined in the deal, subject to the approval of the Moroccan government. The company said it plans to drill at least two wells in the area by 2014.Oil Market Update (January 8, 2012) from Oil Investing News