Enterprise, Genesis Energy to build crude oil system in deepwater Gulf of Mexico

HOUSTON, Texas - Enterprise Products Partners L.P. (NYSE: EPD) and Genesis Energy, L.P. (NYSE: GEL) on Jan. 4 announced that they have executed crude oil transportation agreements with a consortium of six Gulf of Mexico producers which will provide the necessary support for construction of a new crude oil gathering pipeline serving the Lucius development area in southern Keathley Canyon.

The producer group is comprised of Anadarko U.S. Offshore Corp., Apache Deepwater Development LLC, Exxon Mobil Corp., Eni Petroleum US LLC, Petrobras America Inc. and Plains Offshore Operations Inc.

The pipeline will be constructed and owned by Southeast Keathley Canyon Pipeline Co. LLC (SEKCO), a 50/50 joint venture between Enterprise and Genesis. Enterprise will serve as construction manager and operator of the new pipeline, earning fees for both services.

The 149-mile, 18-inch SEKCO Oil Pipeline is being designed with a capacity of 115,000 barrels per day b/d) 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 approximately 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 b/d of crude oil and 450 million cubic feet per day of natural gas. The Lucius production area is estimated to have more than 300 million barrels of oil equivalent, with relatively shallow and highly productive reservoirs, primarily comprised of crude oil.

"We are very pleased to work with our partner and customers to develop this project, which will allow for the continued safe and reliable delivery of vital domestic crude oil supplies to Gulf Coast refineries," said Michael A. Creel, president and CEO of Enterprise's general partner.

"Additionally, we expect the SEKCO Oil Pipeline to provide capacity for additional projects in the deepwater Gulf of Mexico that will feed Enterprise's downstream crude oil pipeline value chain."

‘Deepwater Horizon’ rig explosion injures 17 workers, burns out of control

PORT FOURCHON, La. – Transocean’s Deepwater Horizon drilling rig in the Gulf of Mexico off the Louisiana coast was involved in an explosion and fire at around 10 p.m. on April 20, sending spectacular bursts of flame into the sky.
The fires were still raging on the afternoon of April 21. Nearly 24 hours after the explosion, the rig continued to burn, and authorities could not say when the flames might die out. A column of boiling black smoke rose hundreds of feet over the Gulf of Mexico as fireboats shot streams of water at the blaze.
Seventeen workers were injured, three critically, the U.S. Coast Guard said.
Eleven others were reported missing after the explosion.
Of those on the rig when the accident occurred, 79 were Transocean workers, six were BP employees and 41 were contract workers.
Vice President Adrian Rose of Transocean, the rig owner, said crews before the explosion were performing routine work and that there was no sign of trouble. The rig was under contract to BP PLC.
Rose said the explosion appeared to be a blowout, in which natural gas or oil forces its way up a well pipe and smashes equipment.
The rig late on April 21 was listing by 10 degrees and said to be sinking.
According to the Transocean website, the Deepwater Horizon is 396 feet long and 256 feet wide and was located in 5,000 feet of water.
Offshore drilling is a dangerous occupation. Since 2001, there have been 69 offshore deaths, 1,349 injured and 858 fires and explosions in the Gulf of Mexico, according to the federal Minerals Management Service.