EPP, Genesis to build offshore Gulf of Mexico crude pipeline

Jan. 4, 2012
Southeast Keathley Canyon Pipeline Company LLC (Sekco), a 50-50 joint venture of Enterprise Products Partners LP and Genesis Energy LP, will build and own the 149-mile, 18-in. OD Sekco Oil Pipeline, serving the Lucius development in southern Keathley Canyon.

Southeast Keathley Canyon Pipeline Company LLC (Sekco), a 50-50 joint venture of Enterprise Products Partners LP and Genesis Energy LP, will build and own the 149-mile, 18-in. OD Sekco Oil Pipeline, serving the Lucius development in southern Keathley Canyon. EPP will serve as construction manager and operator of the new line, earning fees for both services.

Sekco will have capacity to carry 115,000 b/d from the Lucius-truss spar floating production platform to an existing junction platform at South Marsh Island 205, part of the EPP-operated Poseidon pipeline system.

A group led by Anadarko Petroleum Corp. sanctioned development of Lucius by truss spar in late 2011 (OGJ Online, Dec. 15, 2011). Anadarko expects the truss spar, sited in about 7,100 feet of water, to produce more than 80,000 b/d of oil and 450 MMcfd of natural gas. The company estimates the Lucius production area’s reserves at more than 300 million bbl of oil equivalent, with relatively shallow and highly productive reservoirs, primarily comprised of crude oil.

EPP and Genesis executed oil transportation agreements with Anadarko (35%) and Lucius’ five other participants: Apache Deepwater Development LLC (11.7%), ExxonMobil Corp. (15%), Eni Petroleum US LLC (5.4%), Petrobras America Inc. (9.6%), and Plains Offshore Operations Inc. (23.3%).

Enterprise expects Sekco to begin service by mid-2014.

Contact Christopher E. Smith at [email protected].