Duke Energy Acquires ChevronTexaco Assets

Duke Energy Field Services has signed agreements to acquire ChevronTexaco's 33.3 percent-ownership interest in Discovery Producer Services, LLC. The sale, mandated in a consent order by the U.S. Federal Trade Commission as a condition of approving the merger between Chevron and Texaco, will significantly increase DEFS' midstream presence in the Eastern Gulf of Mexico. The transaction is expected to close during second quarter 2002. Terms were not disclosed.

The Discovery assets, which were primarily constructed in 1997, extend from the deepwater offshore Louisiana to onshore delivery points approximately 30 miles south of New Orleans. Discovery owns and operates a 600-million- cubic-feet-a-day (MMcf/d) interstate pipeline, including a 30-inch mainline that extends to the edge of the outer continental shelf, a condensate handling facility, a 600-MMcf/d, cryogenic gas processing plant, a 42,000-barrels-a-day fractionator, 400 MMcf/d of deepwater gathering laterals and a fixed-leg platform at Grand Isle 115 to host deepwater developments.

"Discovery is strategically positioned to serve both shallow and deepwater Eastern Gulf of Mexico producers, including some of the most prolific deepwater areas such as Green Canyon, Mississippi Canyon, Ewing Bank and Atwater Valley," said Mark Borer, senior vice president of DEFS. "Adding these assets will strengthen DEFS' presence in the growing Eastern Gulf of Mexico."