Enterprise signs 10-year Eagle Ford oil transport deal

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Mar. 23 -- Enterprise Products Partners LP has entered into a 10-year agreement with two producers in the Eagle Ford shale play of South Texas to provide 50,000 b/d of firm crude oil transportation and marketing services on its new 140-mile, 24-in. OD crude oil pipeline currently under construction. The agreement is a single contract between Enterprise and the two producers and brings the pipeline to more than 175,000 b/d of its 350,000 b/d capacity.

Enterprise has previous Eagle Ford crude delivery agreements in place with EOG Resources Inc., Pioneer Natural Resources USA Inc., Reliance Eagleford Upstream Holding LP, and Newpek LLC.

Enterprise expects the pipeline to enter service second-quarter 2012, supplying a new Houston-area crude terminal the company is currently building, among other facilities. The second-quarter timing is a one-quarter delay from the first-quarter 2012 start-up initially predicted by Enterprise (OGJ Online, Sept. 13, 2010).

About 150 rigs are presently working in the Eagle Ford shale, according to Enterprise, which have drilled more than 500 wells. Current production from the play equals roughly 80,000 b/d of crude oil and condensate, Enterprise says.

Contact Christopher E. Smith at chriss@ogjonline.com.

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