Enterprise Products Partners agreed to sell its offshore Gulf of Mexico pipelines and services business to Genesis Energy for $1.5 billion. Enterprise CEO Michael Creel said the proceeds from the sale would be used to finance the first installment of the company’s recent acquisition of EFS Midstream, as well as other growth opportunities in the Eagle Ford shale and the Permian Basin. Enterprise’s offshore assets include nine crude oil pipeline systems with more than 1,100 miles of pipeline, nine natural gas systems with 1,200 miles of pipeline and six offshore hub platforms.
Creel said the offshore pipeline networks being sold did not effectively integrate with Enterprise’s downstream oil and gas pipeline systems. He said the offshore business represented only 3% of Enterprise’s gross operating margin.
Enterprise closed on the $2.2 billion acquisition of member interests in EFS Midstream owned by Pioneer Natural Resources and Reliance Holding earlier this month. EFS provides natural gas gathering, treating, compression and condensate processing services in the Eagle Ford.
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