Enterprise Products Partners L.P. : Enterprise and Genesis Energy to Build Crude Oil Gathering Pipeline in the Deepwater Gulf of Mexico

HOUSTON--(BUSINESS WIRE)--Jan. 4, 2012-- Enterprise Products Partners L.P. (NYSE:EPD) and Genesis Energy, L.P. (NYSE:GEL) today announced that they have executed crude oil transportation agreements with a consortium of six Gulf of Mexico producers which will provide the necessary support for construction of a new crude oil gathering pipeline serving the Lucius development area in southern Keathley Canyon. The producer group is comprised of Anadarko U.S. Offshore Corporation, Apache Deepwater Development LLC, Exxon Mobil Corporation, Eni Petroleum US LLC, Petrobras America Inc., and Plains Offshore Operations Inc. The pipeline will be constructed and owned by Southeast Keathley Canyon Pipeline Company LLC ("SEKCO"), a 50/50 joint venture between Enterprise and Genesis. Enterprise will serve as construction manager and operator of the new pipeline, earning fees for both services.

The 149-mile, 18-inch diameter SEKCO Oil Pipeline is being designed with a capacity of 115,000 barrels per day ("BPD") and would connect the Lucius-truss spar floating production platform to an existing junction platform at South Marsh Island 205 that is part of the Enterprise-operated Poseidon pipeline system. The SEKCO Oil Pipeline is expected to begin service by mid-2014. Located in approximately 7,100 feet of water, the third-party owned Lucius-truss spar floating production platform has the capability to produce in excess of 80,000 BPD of crude oil and 450 million cubic feet per day of natural gas. The Lucius production area is estimated to have more than 300 million barrels of oil equivalent, with relatively shallow and highly productive reservoirs, primarily comprised of crude oil.

"We are very pleased to work with our partner and customers to develop this project, which will allow for the continued safe and reliable delivery of vital domestic crude oil supplies to Gulf Coast refineries," said Michael A. Creel, President and Chief Executive Officer of Enterprise's general partner. "Additionally, we expect the SEKCO Oil Pipeline to provide capacity for additional projects in the deepwater Gulf of Mexico that will feed Enterprise's downstream crude oil pipeline value chain."

Grant E. Sims, Chief Executive Officer of Genesis, said, "We are excited about the opportunity to proceed with Enterprise and the Lucius producers to provide infrastructure out of the Keathley Canyon Area that interconnects with existing shallow-water pipelines for delivery of crude oil produced from world-class domestic reservoirs to multiple refining markets in the Gulf Coast."

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership's assets include approximately: 50,000 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 8 billion cubic feet of natural gas storage capacity. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminaling; offshore production platform services; crude oil and refined products transportation, storage and services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis' operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations, principally located in Texas, Louisiana, and Arkansas. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products, and certain industrial gases. Genesis' operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and Genesis expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. Although Enterprise and Genesis believe that the forward-looking statements included herein are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risks and uncertainties included in the reports filed with the Securities and Exchange Commission by Enterprise and Genesis, respectively. While Enterprise and Genesis make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, neither Enterprise nor Genesis intends to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Enterprise Products Partners L.P.

Enterprise
Randy Burkhalter, 713-381-6812 or 866-230-0745
Investor Relations
Rick Rainey, 713-381-3635
Media Relations
or
Genesis
Robert V. Deere, 713-860-2516
Chief Financial Officer