Shell, Enterprise Plan New Gas Pipeline in Deepwater Western Gulf of Mexico

Shell Gas Transmission and the operating partnership of Enterprise Products Partners L.P. plan to construct and install a $40 million pipeline in the western Gulf of Mexico. The new 41-mile, 16-inch pipeline is expected to be ready to transport gas production beginning as early as November 2003 from the deepwater Gunnison development operated by Kerr-McGee.

The pipeline will be owned by Triton Gathering, LLC (Triton), which owns gas gathering lines that connect to the Stingray Pipeline Company, L.L.C. (Stingray) pipeline system. Triton and Stingray are both jointly owned by Shell and Enterprise. The new Triton pipeline will have a capacity of 275 million cubic feet per day and will connect into the Stingray pipeline system. The new pipeline's capacity will be sufficient to accommodate Gunnison production plus additional volumes from future developments in the area.

"This extension to our Triton system represents an important expansion of the gas transportation infrastructure in the western Garden Banks corridor," said Doug Krenz, president of Shell Gas Transmission, LLC. "By serving Gunnison, the first discovery in this area, we are solidifying the positions of Triton and Stingray as leaders in Western Gulf."

The Gunnison discovery is located at Garden Banks Block 667, 668 and 669 in 3,150 feet of water. Kerr-McGee owns a 50% working interest and is the operator; Nexen Petroleum Offshore U.S.A. Inc. (30%) and Energy Resource Technology Inc., a subsidiary of Cal Dive International Inc. (20%), own the remaining interest. Kerr-McGee is developing Gunnison with a truss spar platform, which can serve as a hub for future development and third-party production.