Enterprise, Genesis Energy to build crude oil gathering pipeline in deepwater Gulf of Mexico

Offshore staff

HOUSTON – Enterprise Products Partners L.P. and Genesis Energy have executed crude oil transportation agreements with a consortium of six Gulf of Mexico producers which will provide the necessary support for construction of a new crude oil gathering pipeline serving the Lucius development area.

The producer group is comprised of Anadarko U.S. Offshore Corp., Apache Deepwater Development LLC, ExxonMobil Corp., Eni Petroleum US LLC, Petrobras America Inc., and Plains Offshore Operations Inc. The pipeline will be constructed and owned by Southeast Keathley Canyon Pipeline Co. (SEKCO), a 50/50 joint venture between Enterprise and Genesis. Enterprise will serve as construction manager and operator of the new pipeline, earning fees for both services.

The 149-mi, 18-in diameter SEKCO Oil Pipeline is being designed with a capacity of 115,000 b/d and would connect the Lucius-truss spar floating production platform to an existing junction platform at South Marsh Island 205 that is part of the Enterprise-operated Poseidon pipeline system. The SEKCO Oil Pipeline is expected to begin service by mid-2014.

Located in about 7,100 ft (2,164 m) of water, the third-party owned Lucius-truss spar floating production platform has the capability to produce in excess of 80,000 b/d of crude oil and 450 MMcf/d of natural gas. The Lucius production area is estimated to have more than 300 MMboe, with relatively shallow and highly productive reservoirs, primarily comprised of crude oil.

“We are very pleased to work with our partner and customers to develop this project, which will allow for the continued safe and reliable delivery of vital domestic crude oil supplies to Gulf Coast refineries,” said Michael A. Creel, president and CEO of Enterprise’s general partner.

“Additionally, we expect the SEKCO Oil Pipeline to provide capacity for additional projects in the deepwater Gulf of Mexico that will feed Enterprise’s downstream crude oil pipeline value chain.”

Grant E. Sims, CEO of Genesis, said, “We are excited about the opportunity to proceed with Enterprise and the Lucius producers to provide infrastructure out of the Keathley Canyon area that interconnects with existing shallow-water pipelines for delivery of crude oil produced from world-class domestic reservoirs to multiple refining markets in the Gulf Coast.”

01/04/2012



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