Main Pass – Frasch Sulphur Mine Development

In the spring of 1988, Freeport-McMoRan Resource Partners Ltd. Partnership, IMC Fertilizer Inc. and Homestake Mining Co., as joint venturers, were awarded the sulphur lease for Main Pass Block 299, lease number OCS-G 91372. This was one of 11 leases awarded to the joint venturers. Following the initial discovery wells in December 1988, delineation drilling confirmed proven sulphur reserves of 68 Mt (67 million long tons). Proven, recoverable oil and gas reserves are 6.2 Mm3 (39.4 million bbl) and 1114 Mm3 (7.2 billion cu ft), respectively. Development of the sulphur mine was given approval as a fast-track project in 1989. The oil and gas reserves were acquired from the original hydrocarbon lessee in 1990 and were also given fast-track status. Fast-track for these projects meant design and engineering would not be complete before construction began. Joint venture The Main Pass Joint Venture is one of 13 joint ventures formed between Freeport and three other companies - IMC Fertilizer, Inc., Felmont Oil Corp., a wholly owned subsidiary of Homestake Mining Co., and Texasgulf Minerals and Metals Co. Felmont has since changed its name to Homestake Sulphur Co. Texasgulf assigned its interests to its parent company. Texasgulf did not participate in the Main Pass 299 joint venture. Joint venture negotiations, anticipating a lease sale in mid-1988, began in December of 1987. This joint venture, the first of its kind, was created to acquire offshore leases, explore, develop and mine sulphur. The Interior Department's Minerals Management Service (MMS) announced a lease sale date of Feb. 24, 1988 on the first business day of 1988. This greatly accelerated the joint venture negotiations. Of the 13 leases the joint ventures bid on, 11 were awarded. Freeport holds its interest in all the leases through its ownership interest in Freeport-McMoRan Resource Partners, Ltd. Partnership. Resource Partners is the operator on all of the leases.