Enterprise, Genesis Finalize Gulf Of Mexico Transportation Agreements

February 2012, Vol. 239 No. 2

Enterprise Products Partners and Genesis Energy have executed crude oil transportation agreements with a consortium of six Gulf of Mexico producers which will provide support for construction of a crude oil gathering pipeline serving the Lucius development area in southern Keathley Canyon.

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

The 149-mile, 18-inch SEKCO Oil Pipeline is being designed with a capacity of 115,000 bpd 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 7,100 feet of water, the third-party owned Lucius-truss spar floating production platform has the capability to produce in excess of 80,000 bpd of crude and 450 MMcf/d of natural gas. The Lucius production area is estimated to have more than 300 MMbbls of oil equivalent, with relatively shallow and highly productive reservoirs, primarily comprised of crude oil.