Transportation Crude line poised for start-up in Gulf of Mexico

Where Poseidon Pipeline Will Operate [70644 bytes]

A new pipeline system is preparing to begin shipping crude oil to shore from deepwater and subsalt fields in the Central Gulf of Mexico.

Phase 1 of the Poseidon pipeline system is to be ready next month to start moving crude 117 miles from Garden Banks Block 72, along the edge of the Outer Continental Shelf, to a Leviathan Gas Pipeline Partners LP platform on Ship Shoal South Addition Block 332.

Ultimately, Poseidon will consist of about 200 miles of 16, 20, and 24 in. line able to deliver as much as 400,000 b/d of sour crude from Garden Banks 72 through a landing at Caillou Island, La., to markets onshore.

Poseidon will connect near Houma, La., with Texaco Pipeline Inc. systems.

Until completion of Phase 2 next September, crude shipments using the Poseidon pipeline will use the Manta Ray pipeline system in the Eugene Island federal planning area to reach shore.

A unit of Texaco Inc. will operate the Poseidon system through Poseidon Oil Pipeline Co. LLC, a 50-50 venture of Texaco Inc. and Leviathan, Houston.

Leviathan began building Poseidon's first phase facilities last August.

Poseidon partners have signed agreements with several operators covering shipping of production from other deepwater and subsalt developments in the central gulf. Officials also plan to sign dedications from several other development projects in Poseidon's service area.

While supported in part by third party throughput, Poseidon also will be able to handle production from future Texaco developments in the central gulf. Fuji, one of three Texaco deepwater discoveries disclosed in third quarter 1995, likely will transport production through Poseidon to onshore markets (OGJ, Sept. 25, 1995, p. 40).

Texaco produces an average 58,500 b/d of oil and 879 MMcfd of gas in the Gulf of Mexico. Units of Texaco own interests in 30,000 miles of pipeline in North America and operate trucking fleets in 31 states and Canada.

Leviathan operates or owns interests in nine Gulf of Mexico pipeline systems off Louisiana and Texas gathering about 2.5 bcfd of gas. Poseidon is Leviathan's first major crude oil pipeline.

DeepTech International Inc. owns an effective 23.2% interest in Leviathan.

Earlier, Shell Pipe Line Corp. disclosed plans for two pipeline systems to transport production from other deepwater developments.

Shell's Amberjack pipeline this year is to begin moving crude oil from the Bullwinkle tension leg platform (TLP) in 2,860 ft of water on Green Canyon Block 143 to Fourchon, La. Later in 1996, another Shell offshore pipeline is to begin shipping crude to Fourchon from the Mars TLP in 2,933 ft of water on Mississippi Canyon Block 807.

Throughput of both pipelines will be delivered to Louisiana Offshore Oil Port (OGJ, Aug. 21, 1995, p. 22).