Genesis Energy, L.P. Signs New Deepwater Gulf Of Mexico Transportation Agreements

Genesis Energy, L.P.
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Genesis Energy, L.P. (GEL) - Get Report announced today that it has entered into agreements with Fieldwood Energy LLC ("Fieldwood"), Ridgewood Katmai, LLC and ILX Prospect Katmai, LLC, two entities managed by Ridgewood Energy Corporation, to provide downstream transportation services for 100% of the crude oil production associated with the deepwater Gulf of Mexico Katmai field development through the existing Tarantula production platform ("Tarantula Platform"), owned by Fieldwood.

The Tarantula Platform, located in South Timbalier block 308, has the capability to process up to 25,000 barrels per day of oil from the Katmai field development. The Katmai field development is located in Green Canyon blocks 39 and 40.

The Tarantula Platform is currently connected to our 100% owned Tarantula lateral and the crude oil production will then be delivered to our 64% owned Poseidon crude oil system for delivery to shore.

The contracts for the Katmai field include life of lease dedications and no capital was required by Genesis to connect the Katmai production to our assets. First deliveries of oil are anticipated in the second quarter of this year.

Grant E. Sims, the Chief Executive Officer of Genesis, commented, "The dedication of the Katmai production is an exciting opportunity for us, and we look forward to working with Fieldwood, and the other interest owners, as they develop the Katmai fields. This project, which follows our most recent December announcement of the dedication by Murphy Exploration & Production Company - USA of its crude oil and gas production from its Khaleesi / Mormont and Samurai field developments, is yet another example that illustrates the strategic positioning of our offshore footprint and how our available capacity and multi-market delivery options will allow us to provide Fieldwood and other producers in the Gulf of Mexico with attractive transportation alternatives for many years ahead."

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis' operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation and marine transportation. Genesis' operations are primarily located in the Gulf Coast region of the United States, Wyoming and the Gulf of Mexico.

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