From Houston (BN): Genesis Energy is buying Enterprise Products’ Gulf of Mexico pipelines and services business for $1.5bn in cash.
The deal includes nine crude oil pipelines totalling more than 1,770km, nine natural gas systems totalling about 1,900km and interests in six hub platforms.
Among assets changing hands are Enterprise’s 80% interest in Independence Hub and 100% ownership of Independence Trail gas pipeline, as well as interests in oil pipelines Poseidon (36%), Cameron Highway aka CHOPS (50%) and Southeast Keathley Canyon aka SEKCO (50%).
Enterprise says it will refocus its efforts onshore, where the bulk of its assets are located. Genesis, which becomes sole owner of SEKCO and CHOPS and majority owner of Poseidon, says it expects the acquisition to enhance its already prominent position in offshore mid-streaming and, as deepwater GOM production grows, to offer opportunities for organic growth.
SEKCO is a 240km, 18in, 115,000 b/d pipeline linking the Lucius platform in Keathley Canyon block 875 to the Poseidon system at South Marsh Island 205. CHOPS is a 610-km, 24in and 30in line extending from Ship Shoal 332 south of Louisiana westward to Texas City and Port Arthur in Texas.
It carries oil from the Holstein, Mad Dog, Atlantis, K2, Constitution and Ticonderoga fields. As deepwater production grows, CHOPS is expected to carry oil from the areas of Atwater Valley, Walker Ridge, Keathley Canyon, Garden Banks and deep Green Canyon.
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