New Crude Oil pipeline system to be built in Gulf of
EPD, GEL, APC, APA, XOM, E, PBR, PXP, BP, MRO, RDS-A, CVX,
Two pipeline companies have agreed to a 50-50 J-V to build a
new 149-mile offshore gathering system in the Gulf of Mexico.
Enterprise Products Partners LP (
) and Genesis Energy LP (
) will build the system and Enterprise will be the operator.
The new gathering system will serve the Keathley Canyon area
and serve producers Anadarko Petroleum Co. (
), Apache Corp. (
), Exxon Mobil Corp. (
), Eni SpA (E), Petroleo Brasileiro (PBR), and Plains Exploration
& Production Co. (PXP).
Keathley Canyon was the site of the 1st major Crude Oil
discovery in the US Gulf once drilling was reopened following the
Macondo well tragedy. Exxon, which made the discovery, has
estimated the resource at 700-M bbls.
The Joint Venture, called the Southeast Keathley Canyon
Pipeline Co. LLC (SEKCO), plans to build an 18-inch pipeline to
transport 115,000 BPD of Crude Oil to a floating production
platform and connect to Enterprise's Poseidon pipeline system to
move the Oil onshore. The southeast portion of Keathley Canyon is
estimated to hold about 300-M bbls of reserves.
Related transactions: Genesis is acquiring a 28% stake in the
Poseidon pipeline system from Marathon Oil Corp. (MRO), as well
as a 29% stake in the Odyssey pipeline system which is majority
owned and operated by Royal Dutch Shell plc (NYSE:RDS-A) and a
23% stake in the Eugene Island pipeline system owned by a group
including Exxon, Shell, Chevron Corp. (CVX), and ConocoPhillips
(COP). Genesis is paying about $206-M for these 3 acquisitions,
which includes about $26-M for the value of the Crude Oil in the
pipelines. The Company used its revolving credit facility to
finance the purchases.
The SEKCO pipeline system is expected to be in service by
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red
Roadmaster's Technical Report on the US Major Market Indices, a
weekly, highly-regarded financial market letter, read by opinion
makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and
stock markets since 1984, following a successful business career
that included investment banking, and market and business
analysis. He is a specialist in equities/commodities, and an
accomplished chart reader who advises technicians with regard to
Major Indices Resistance/Support Levels.