Enterprise Products Partners LP (NYSE: EPD) has executed definitive agreements to sell its offshore Gulf of Mexico pipelines and services business, which primarily consists of its Offshore Pipelines & Services business segment to Genesis Energy LP for $1.5 billion in cash. The transaction is expected to close during the third quarter of 2015.
Enterprise’s offshore assets include its ownership interest in nine crude oil pipeline systems, with more than 1,100 miles of pipeline; nine natural gas pipeline systems, totaling 1,200 miles of pipeline; and its ownership interest in six offshore hub platforms.
At closing, Genesis and affiliates of Enterprise will enter into a transition services agreement to ensure the responsible operation of the business until all operations can be prudently assumed by Genesis.
Citigroup Global Markets Inc. acted as financial advisor to Genesis for the acquisition.