Shell Bolstering Its Presence in Gulf of Mexico
The Gulf of Mexico has long been a lucrative area for Royal Dutch Shell and other oil companies, with Shell reinforcing that connection during the waning days of 2016. That’s when the company’s board of directors chose to approve a deal involving one of the multi-national firm’s subsidiaries, Shell Midstream Partners.
The specific deal involves purchasing a 10 percent interest in both the Endymion Oil Pipeline Co. and the Proteus Oil Pipeline Co. In addition, Shell will also dip their toes into another investment through the purchase of a one percent interest in the Cleopatra Gas Gathering Co. Each of these is located in the eastern portion of the Gulf.
Strategically, the Endymion and Proteus investments will allow for the company’s Mattox pipeline to eventually be connected to markets that surround the Gulf from their onshore perch. Each of those lines offers an oil capacity of as much as 425,000 barrels per day and are connected to the Mississippi Canyon region.
In the Endymion’s case, it reaches the storage terminal at the Louisiana Offshore Oil Port through a pipeline that spans 89 miles. Meanwhile, the Proteus is a 71-mile pipeline linked to the Dantzler and Big Bend fields that are currently held by Noble Energy.
The Appomattox platform will be the main beneficiary of the Mattox pipeline, though it’s still in the process of being constructed. The eventual target date for completion is either 2019 or 2020 at the latest.
In the case of the Cleopatra pipeline that’s located in the Southern Green Canyon, it’s connected to five platforms with another, the Mad Dog 2, poised for activity when it reaches online status. This pipeline spans 115 miles and has access to three Gulf areas: the Walker Ridge, Lund and Atwater Valley.