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August 27, 2002

Cell spar selected for Red Hawk deepwater field

Cell sparKerr-McGee Corp.and its partner Ocean Energy, Inc. have selected Technip Offshore, Inc. to construct the world's first cell spar for the development of the Red Hawk deepwater field in Garden Banks block 877 in the Gulf of Mexico. First production from this natural gas field with estimated proven reserves of more than 250 billion cubic feet is expected in the second quarter of 2004. Located in 5,300 feet of water, Red Hawk will be Kerr-McGee's deepest development to date.

Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Kerr-McGee Corp., operates Red Hawk with 50% interest, and Ocean Energy holds the remaining 50%.

"Kerr-McGee maintains its position as a technological leader in the deepwater industry with the Red Hawk development marking another offshore milestone," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "This new cell spar technology will allow us to capitalize on our deepwater prospects by reducing the reserve threshold needed for an economical platform development in deep waters."

The innovative cell spar, which is the third generation of spar technology, will have an initial daily production capacity of 120 million cubic feet of gas, with ultimate capacity of 300 million cubic feet. It will measure 64 feet in diameter and 480 feet in length. The design includes seven tubes, each 20 feet in diameter, with a center tube surrounded by the other six tubes, all connected by structural steel. The deck will be 110 feet by 132 feet. Construction is expected to begin in the fourth quarter of 2002.

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