MTS Houston To Host Presentation on Cameron Highway

On June 24, 2004 Bart Heijermans, Vice President Offshore of GulfTerra Energy Partners, LLP, will make a presentation to the Houston Section of the Marine Technology Society on The Cameron Highway Oil Pipeline System, a $458 MM 380-mile oil pipeline system currently under construction in the Gulf of Mexico. The new system, a joint venture owned 50/50 by GulfTerra Energy Partners, L.P. and Valero Energy, is expected to be in service by the third quarter of 2004. It is designed to deliver up to 650,000 barrels of oil per day from the southern Green Canyon and western Gulf of Mexico areas to several delivery points in Port Arthur and Texas City, Texas. It will also be one of the largest offshore oil pipeline systems in the US.

GulfTerra announced the project in the first quarter of 2002 when it executed agreements with BP, BHP and Unocal to delivery their working interest production from the Holstein, Mad Dog and Atlantis fields in southern Green Canyon to the downstream markets in Port Arthur and Texas City. The rationale behind the project was to provide deepwater producers in the central and western Gulf of Mexico direct access to the Texas markets, as an alternative to using existing pipeline systems that bring offshore crude oil to southern Louisiana. Several deepwater producers were concerned that the increase of oil production from the deepwater trend in the Gulf of Mexico would cause the existing crude oil pipeline network in southern Louisiana to become congested. GulfTerra responded to these concerns by proposing the development of the Cameron Highway.

Cameron Highway initiates on the new Cameron Highway owned-platform in Ship Shoal Block 332 and consists of two 30-inch segments, two 24-inch segments and two new shelf based platforms that will support two pump stations with turbine driven pumps (>30,000 HP) and seven onshore delivery points.

At the presentation on June 24 which is open to anyone interested in attending, Mr. Heijermans will discuss:

  • The existing oil pipelines systems and the expected increase in oil production in the Deepwater Trend.

  • The Cameron Highway business model and the downstream advantages it offers deepwater producers.

  • The rationale behind the agreement with BP, BHP and Unocal to build Cameron Highway as an alternative to other planned oil pipeline systems.
  • The unanticipated requirement to install a new B platform in Ship Shoal Block 332, bridge-connected to the existing A platform, as the result of a new interpretation of the existing A platform's MMS structural assessment criteria.
  • Onshore permitting and Right of Way acquisition for a proprietary system.

  • In addition to the discussion of these topics, the presentation will focus on several cost savings initiatives, the leak detection system, the crude oil quality bank and the $325 million non-recourse project financing for the project.

    About Bart Heijermans

    As Vice President Offshore for GulfTerra Energy Partners, L.P. Mr. Heijermans is responsible for (i) the general management of oil and gas pipelines, platforms and production assets in the Gulf of Mexico, (ii) the implementation and execution of $ 1 billion of greenfield projects and (iii) the origination and development of new investment opportunities in the Gulf of Mexico. Mr. Heijermans joined GulfTerra in 1997 as Vice President Operations and Engineering after eight years with Royal Dutch Shell in the USA, UK and the Netherlands. Mr. Heijermans has a Master of Science degree in Civil and Structural Engineering from the University of Delft, the Netherlands.

    About the Marine Technology Society

    The Houston Section of the Marine Technology Society, the largest Section in the Society, has over 700 members, comprised mainly of professionals involved in offshore oil and gas exploration and recovery. The Section hosts regular lunch presentations at the Westchase Hilton Hotel (9999 Westheimer), as well as a variety of fund-raiser social events. These include a Sporting Clays Tournament, Golf Tournament and Annual Barbecue.The Section hosts and/or supports a number of conferences and seminars each year, including the Offshore Technology Conference, the Dynamic Positioning/Marine Technology Symposium and Underwater Intervention. In addition, the MTS Houston Section supports Student Chapters at Texas A&M in College Station and Galveston and donates around $30,000 in scholarships annually.

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