Crude Oil Pipeline Set for Gulf of Mexico

Enterprise Products Partners LP said Thursday it will build a crude oil pipeline from one Gulf of Mexico field to another.

The Shenzi oil export pipeline will originate at the Shenzi Field, located in 4,300 feet of water 120 miles off the coast of Louisiana and operated by BHP Billiton.

The 83-mile, 20-inch diameter pipeline will have the capacity to transport up to 230,000 barrels per day of crude oil and will connect the field to the Cameron Highway Oil Pipeline and Poseidon Oil Pipeline systems at Enterprise’s Ship Shoal 332B junction platform. Enterprise owns a 50-percent interest in Cameron Highway and a 36-percent interest in Poseidon and operates both pipelines.

Besides BHP Billiton, other field owners are Repsol E&P USA Inc. and Hess Corp., each owning a 28-percent interest. Enterprise’s new oil export pipeline will connect to a platform being constructed by BHP Billiton to develop the field, with production expected to begin in mid-2009.