For immediate release

EnerSea Awarded Funding for Ultra-deepwater Gas Development Study 

Houston, Texas ( December 5, 2003) – EnerSea Transport LLC (EnerSea) moved one step closer to implementing an innovative solution that is expected to address projected shortages of natural gas in the United States.  The Research Partnership to Secure Energy for America (RPSEA) has agreed to jointly fund a study for an all-in-one “Gas Production, Storage and Shuttling" (GPSS) system for use in the ultra-deepwater Gulf of Mexico. 

The study will evaluate EnerSea’s patented VOTRANS™ (Volume Optimized Transport and Storage) compressed natural gas (CNG) marine transport technology for application to gas fields having minimal processing requirements in deepwater areas.  This comprehensive system will allow gas to be produced on a continuous basis directly into VOTRANS™ vessels from subsea wells through loading buoys.  Once filled, vessels will disconnect and transit to an offshore gas port for delivery to the marketplace.

Representatives from Kerr-McGee Oil & Gas Corp., a wholly owned affiliate of Kerr-McGee Corp. (NYSE: KMG), will provide operations input to the study team. 

“As a leader in the use of innovative technology for deepwater exploration and development, Kerr-McGee recognizes the value of technological advancements,” said Darrell Hollek, Kerr-McGee vice president of Gulf of Mexico and worldwide deepwater operations.  “We look forward to assisting with the evaluation of EnerSea’s VOTRANS^TM system for transportation of CNG from ultra-deepwater developments.”

“We are pleased to be part of this study for a new solution that will expand the range of opportunities available for the deepwater Gulf and elsewhere to bring gas to the U.S.,” said Paul Britton, EnerSea’s managing director.  “We’ve already made great progress in developing our CNG technology and this new endeavor will accelerate our work and complement other efforts to gain approvals for CNG in the U.S. and worldwide.”

“RPSEA saw the great potential in EnerSea’s plans to study a cost-competitive, marketable CNG transport system for ultra-deepwater gas developments,” said Dr. Daniel López, chairman of RPSEA.  “The rising demand for natural gas provides a true incentive for development of new natural gas technologies, and RPSEA has been encouraged by the great strides EnerSea has made with CNG marine transport and storage.  We are proud to be moving forward together on this venture.”

RPSEA is a not-for-profit corporation formed by a consortium of universities, industry and independent research organizations.  Its mission is to facilitate cooperative efforts to identify and develop new methods for exploring, producing, and transporting-to-market natural gas resources from ultra-deepwater and unconventional gas reserves.

Based in Houston, Texas, EnerSea Transport LLC combines innovative technology and a team with expertise from all segments of the oil and gas industry to deliver superior natural gas transportation and storage services.

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