By MELODIE WARNER
Enterprise Products Partners and Genesis Energy plan to
build a crude oil gathering pipeline in the deepwater Gulf of
Mexico for a consortium of six producers.
The midstream energy companies formed Southeast Keathley Canyon
Pipeline Co., a 50/50 joint venture that will construct and own
the 149-mile pipeline with a planned capacity of 115,000
Enterprise will serve as construction manager and operator of
the new pipeline, earning fees for both services.
The SEKCO oil pipeline is expected to begin service by
mid-2014, and will 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 Poseidon is a 367-mile pipeline capable of delivering about
400,000 barrels of crude oil a day from central and western
offshore Gulf of Mexico to onshore and offshore
The Lucius production area is estimated to have more than 300
million barrels of oil equivalent.
Enterprise and Genesis said they have crude oil transportation
agreements with a producer group comprised of Anadarko US
Offshore Corp., Apache Deepwater Development, ExxonMobil Corp.,
Eni Petroleum US, Petrobras America, and Plains Offshore
Enterprise has seen results soar in recent quarters, helped in
part by its $3.3 billion merger with Teppco Partners in late
2009, which created one of the largest pipeline companies in
The company said in May it had $5 billion worth of expansion projects slated for upcoming years
as it seeks to take advantage of growing US onshore oil and gas
Meanwhile, Genesis agreed in October to acquire interests in
three Gulf of Mexico crude-oil pipeline systems from Marathon
Oil in a deal valued at $205.8 million.
The transaction would give it a 28% stake in Poseidon Oil
Pipeline Co., a 29% interest in Odyssey Pipeline and 23% of the
Eugene Island Pipeline System.
Shares of Enterprise and Genesis closed Tuesday at $46.67 and
$27.87, respectively. Both stocks were inactive premarket.
Dow Jones Newswires