Enterprise's Deepwater Oil Pipeline Begins Serving Shenzi Field

Enterprise Products Partners announced that construction of its crude oil pipeline serving the BHP Billiton-operated Shenzi field in the Gulf of Mexico has been completed, and is now transporting production from the deepwater discovery located at Green Canyon Block 653.

The 83-mile, 20-inch diameter pipeline, which has a capacity of 230,000 barrels per day (BPD) of crude oil, connects to the partnership's Ship Shoal 332B junction platform, giving Shenzi producers access to the Enterprise-operated Cameron Highway Oil Pipeline and Poseidon Oil Pipeline systems. Enterprise owns a 50 percent interest in Cameron Highway and a 36 percent interest in Poseidon. Located in approximately 4,300 feet of water about 120 miles off the coast of Louisiana, the Shenzi field is owned by a joint venture comprising BHP Billiton (operator), Repsol E&P USA Inc. and Hess Corporation.

"We are very pleased with the relationship we have developed with BHP Billiton and the rest of the Shenzi producers, as well as the performance of our personnel, whose expertise and efficiency allowed us to complete the project ahead of schedule and under budget," said Michael A. Creel, Enterprise president and chief executive officer. "The Shenzi crude oil pipeline adds an important component to our integrated network of offshore assets that will provide our customers with enhanced flexibility to reach the premier oil markets in Texas and Louisiana."

Through its ownership interest in the Cameron Highway and Poseidon pipelines, Enterprise will also benefit from incremental volumes of crude oil transported through those systems. Additional connection points and excess capacity that have been designed into the Shenzi pipeline will give Enterprise a competitive advantage in pursuing opportunities in the quickly developing Southern Green Canyon and Lower Tertiary plays of the deepwater Gulf of Mexico.


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