Enterprise Products Bows Out Of Offshore GoM For $1.5 Billion

Published at 05:00PM - 16/07/15

Texas based Enterprise Products Partners, has sold all offshore, Gulf of Mexico, assets for US$1.5 billon (GB£ 963 million).

Enterprise Products Partners, the largest US company to specialises in the operation of pipelines and other midstream services, accepted the offer from Genesis Energy, also Texas based.

The acquisition includes nine subsea pipelines, accounting for around 1,000 miles of oil transportation line and 1,200 of natural gas transportation line.

With the departure from offshore subsea pipelines, its expected that Enterprise Energy will take  the money raised from the Gulf of Mexico sale and focus on developing onshore projects within Texas, most notably Permian basin and Eagle Ford.

Genesis is hoping to use the new acquisition to further expand on its current asset sheet of four subsea pipelines within the Gulf of Mexico.

Separately from the Enterprise acquisition, Genesis is also on track to purchase stakes in a further three major Gulf of Mexico subsea transportation pipeline systems: 36% in the Louisiana based Poseidon subsea pipeline and 50% stakes in both the Louisiana based Keathley Canyon subsea pipeline and the Texas based Cameron Highway subsea pipeline.

Genesis is buying a 36 percent interest in the Poseidon system, a 50 percent interest in the Southeast Keathley Canyon system and a 50 percent interest in the Cameron Highway system.

In early trading, markets took the sale in favour of Enterprise, with Enterprise Products Partners shares rising 0.4% and Genesis falling 4.5%.