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Blue Dolphin to deliver production from GoM pipeline

Blue Dolphin Energy Co.'s wholly-owned subsidiary, Blue Dolphin Pipe Line Co., has entered into gas and condensate transportation and production handling agreements with a new producer/shipper to deliver production into the Blue Dolphin Pipeline system at the company's Galveston Block 288C platform.

As a result of participation in development of the drilled prospect, Blue Dolphin has earned an overriding royalty interest in the production. The company expects production and transportation services to commence later this month or by early April.

Throughput volumes are not yet known.

The Blue Dolphin Pipeline system gathers and transports gas and condensate from various offshore fields in the Galveston Area in the Gulf of Mexico to shore facilities in Freeport, Tex. The company owns an 83% undivided interest in the system.

Plains All American prices public offering

Plains All American Pipeline LP, an MLP engaged in the petroleum industry, has priced an underwritten public offering of 5,000,000 common units representing limited partner interests at $36.90 per common unit. The offering is expected to close on March 20, 2009.

The Partnership has also granted the underwriters a 30-day option to purchase up to 750,000 additional common units to cover over-allotments, if any.

The partnership intends to use the net proceeds to reduce outstanding borrowings under its credit facilities, which may be reborrowed to fund future investments, and for general partnership purposes.

UBS Investment Bank, Citi, JP Morgan, Merrill Lynch & Co., and Wachovia Securities are joint book-running managers of the offering.

Esrey assumes chairman role at Spectra Energy

Spectra Energy Corp. has rotated its chairman of the board from Paul Anderson to Bill Esrey. The transition will occur at the annual shareholders meeting on May 7, 2009. Anderson will remain a member of the board of directors.

Esrey is chairman emeritus of Sprint Corp. and has served on Spectra Energy's board since its inception in January 2007.

Previously, he was a board member with Spectra Energy's predecessor companies for roughly 22 years.

Also, Fred Fowler, who recently retired as the company's CEO, will retire from the board of directors, effective May 7, 2009.

Fowler will continue to serve as chairman of the board, Spectra Energy Partners, Spectra Energy Corp.'s master limited partnership.

MarkWest, Midstream & Resources close Marcellus partnership

Natural gas master limited partnership, MarkWest Energy Partners LP, and Midstream & Resources (M&R) have closed their partnership dedicated to the construction and operation of natural gas midstream services to support producer customers in the Marcellus Shale.

Under the terms of the partnership (60% MarkWest, and 40% M&R), MarkWest contributed roughly $100 million of existing Marcellus Shale assets to the partnership and will be responsible for operating the facilities.

M&R will invest the next $200 million of capital, which approximates the capital required to fund the Marcellus project in 2009.

Capital funding for 2010 and 2011 will be driven by producer drilling programs and will be incrementally funded by MarkWest until it achieves the 60 / 40 capital structure.

Morgan Stanley acted as MarkWest's exclusive financial advisor in connection with the formation of the joint venture.

Midstream & Resources (M&R), a US-based $1.4 billion private equity fund, invests in selected areas of the energy infrastructure and natural resources sectors.

Regency Energy Partners, GE Energy Financial, Alinda Captial form JV for Haynesville project

Regency Energy Partners, GE Energy Financial Services and Alinda Capital Partners Bolster Haynesville Pipeline Project in One of Country's Fastest Growing Natural Gas Fields

Regency Energy Partners LP, Alinda Capital Partners LLC, and an affiliate of GE Energy Financial Services are forming a joint venture to finance and construct Regency's Haynesville Expansion Project, a North Louisiana pipeline that will transport gas from the Haynesville Shale. Regency has already secured commitments from shippers for 84% of the pipeline's capacity.

The initial 1.1 bcf/d Haynesville Expansion Project will more than double Regency's pipeline system in North Louisiana and is expected to be in-service by the end of 2009.

Regency will contribute to the joint venture its Regency Intrastate Gas System in North Louisiana, valued at $400 million, in exchange for a 38% general partnership interest in the joint venture. GE Energy Financial Services and Alinda Capital Partners LLC have agreed to contribute $126.5 million and $526.5 million in cash, to the joint venture in return for a 12% and a 50% general partnership interest, respectively. Regency will receive a cash payment equal to the total Haynesville Expansion Project capital expenditures paid through the closing date, subject to certain adjustments.

As Regency's general partner, GE Energy Financial Services, a unit of GE partnered with Regency to raise new capital for the Haynesville Expansion Project despite difficult credit conditions.

An affiliate of Regency will serve as the operator of the joint venture and an affiliate of Regency will provide all employees and services for the operation and management of the joint venture's assets.

In addition, Regency will offer the joint venture the first option to acquire or pursue natural gas transportation and storage opportunities Regency identifies in Northern Louisiana.

As a condition to the closing of the joint venture, Regency is amending its revolving credit facility. Regency is also entering into a $45 million unsecured revolving credit facility with GE, the proceeds of which may be used to pay for expenditures relating to the Haynesville Expansion Project made prior to the closing of the joint venture. Tudor, Pickering, Holt & Co. Securities Inc acted as the financial advisor to the conflicts committee of Regency's general partner.

Enogex expands process optimization solution from eSimulation

Enogex LLC, a natural gas gathering, processing, transportation, production, and energy services company, has entered into an extended software contract with eSimulation Inc.

eSimulation Inc. will extend the eSimOptimizer system to optimize the majority of the midstream company's gas processing facilities.

eSimulation provides software solutions that enable mid-stream operators to accurately manage and forecast their margin positions.

Bredero Shaw pipeline contracts revised from $60M to $80M

Bredero Shaw, a division of ShawCor Ltd., has received contract amendments increasing the value of contracts signed in October 2008 from $60 million to in excess of $80 million.

The revised contracts with Welspun Gujarat Stahl Rohren Ltd. and Tenaris Global Services SA are to provide Concrete Weight Coatings and anode installation for the National Gas Company of Trinidad & Tobago Ltd.'s North East Offshore (NEO) and Tobago Pipeline Projects.

The increase is the result of a change in the coating thickness for the pipelines. Bredero Shaw will mobilize two Compression Coat Technology (CCT) concrete weight coating plants to Trinidad and will commence coating for these projects in the second quarter of 2009.

The North East Offshore Pipeline Project will consist of roughly 94 km of 36" pipe that will transport natural gas from the Angostura Gas Export Platform to Mayaro Bay and then to Beachfield on the east coast of Trinidad.

The Tobago Pipeline Project will consist of roughly 54 km of 12" pipe that will transport natural gas from BHP Billiton's Gas Export platform to Columbus Point on the south coast of Tobago.

Pipeline ruptures near DCP Midstream processing complex, gas delivery hub

Denver-based DCP Midstream LLC and its master limited partnership DCP Midstream Partners LP, have temporarily shut in their jointly owned natural gas processing complex and residue natural gas delivery system known as the Carthage Hub, in East Texas following an explosion and fire that occurred when a nearby third party owned pipeline outside its property line ruptured Wednesday morning.

No employees or contractors were injured in the incident.

There was no damage to the natural gas processing complex. A company-assembled investigation team is on site to assess damages to the Carthage Hub and determine the scope of work to return the facilities to service.

"We are thankful no one was injured in this incident and commend our employees for their immediate response, shutting down the facilities to ensure safety for themselves and others in the area," said Richard Cargile, group vice president, operations, of DCP Midstream. "We will seek to return our operations to service as soon as we are able to safely do so."

The East Texas processing complex has a processing capacity of approximately 780 MMcf/d with recent throughput of nearly 550 MMcf/d. The Carthage Hub has approximately 1.5 bcf/d of delivery capacity.

The East Texas facilities are operated by DCP Midstream and owned 75% by DCP Midstream and 25% by DCP Midstream Partners.

Former Falcon management form Peregrine Midstream Partners

Four members of Falcon Gas Storage Co.'s original founding management group have formed a new company called Peregrine Midstream Partners LLC.

John M. Hopper, Jeffrey H. Foutch, Keith Chandler, and Thomas B. Wynne, all part of Falcon's founding management team, have formed the new Peregrine venture to pursue development and acquisition opportunities in the midstream energy sector, including natural gas storage, transportation and processing; natural gas liquids (NGL) extraction; and crude oil and NGL storage and handling.

"There are tremendous opportunities in the midstream energy space right now," said John M. Hopper, one of Peregrine's four managing directors, on behalf of the new company's founders. "While others pull in their horns and just try to keep their heads above water, opportunities abound for a well-capitalized company with a seasoned management team. It's the perfect time to be a contrarian and move forward."

Headquartered in Houston, Peregrine Midstream Partners is a privately-held company pursuing development and acquisition opportunities in the midstream energy sector in addition to providing midstream asset management and advisory services.

Regency Energy Partners names Dixon Sr. VP, operations

The board of midstream natural gas services provider Regency Energy Partners LP has named Dennie W. Dixon as senior vice president of operations for gathering, processing, and transportation.

Dixon has more than 35 years of experience in natural gas engineering. Prior to Regency, he served as a natural gas consultant for Arledge Gas Gathering in San Antonio; however, the majority of his career was spent with Tenneco and El Paso Corp.

Dixon received a bachelor's degree from Texas A&I University in Kingsville, Tex. and holds an MBA from the University of Houston.

MarkWest, NGP Midstream ink Marcellus Shale JV

MarkWest Energy Partners LP, a growth-oriented master limited partnership engaged in the gathering, transportation, and processing of natural gas, and the gathering and transportation of crude oil, and NGP Midstream & Resources LP (M&R), a $1.4 billion private equity fund, have agreed to form a joint venture to construct and operate natural gas midstream services to support producer customers in the Marcellus Shale.

The JV will be owned 60% by MarkWest and 40% by M&R. MarkWest will operate the facilities and contribute roughly $100 million of existing Marcellus Shale assets to the joint venture. M&R will invest the next $200 million of capital, which approximates the capital required to fund the Marcellus project in 2009. Capital funding for 2010 and 2011 will be driven by producer drilling programs. In order to achieve the 60/40 capital structure MarkWest will invest roughly $200 million in incremental capital by the end of 2011.

By the end of 2009, MarkWest and M&R expect the joint venture to be capable of processing up to 240 million cubic feet per day of gas for Range Resources and other producers.

Frank Semple, chairman, president, and CEO of MarkWest Energy Partners said, "The structure of the joint venture will allow MarkWest to achieve its long-term objectives in the Marcellus while significantly reducing capital requirements over the next several years, which is a critical component of our balance sheet and liquidity objectives."

The closing of the joint venture is subject to customary and other closing conditions. Morgan Stanley is acting as MarkWest's exclusive financial advisor in connection with the formation of the joint venture.

El Paso chooses Virtual Geomatics software for pipeline mapping management

El Paso Natural Gas, a subsidiary of El Paso Corp., has selected Virtual Geomatics VG4D Production Manager Suite of LiDAR Software tools for management of pipeline mapping corridors. The company expects the VG4D software to allow it to easily manage its LiDAR data, perform filtering, visualization and contour generation for pipeline mapping operations.

"By having this technology in-house, now we are quickly able to analyze our data to come up with alternative routes for proposed pipeline projects. We can handle changes in-house, thereby staying on schedule, without having to send out the new proposed alignments and wait for a third party to turn around the alternative routes and send them back to us before we can proceed with our engineering design work," said Matt Simmons, senior GIS Technician at El Paso.

Virtual Geomatics provides LiDAR software solutions for geospatial professionals and their customers.

Global Industries wins $100M pipeline service project in West Africa

Global Industries, a provider of offshore marine construction services, has signed a contract through its wholly-owned subsidiaries, Global Pipelines Plus Nigeria Ltd. and Global Offshore International Ltd. to provide pipeline services to a West African client.

Global's pipeline barge, Cheyenne, will be utilized in the transportation, installation, and related services associated with the replacement and repair of a 24-inch pipeline offshore Nigeria.

John Clerico, Global's chairman and CEO, stated, "We expect the award of this 2009 project to be the first step in our return to profitability in this region."

The contract is valued at nearly $100 million and mobilization is scheduled to begin in January 2009.

TD Williamson appoints new board members

Tulsa-based TD Williamson Inc. has appointed three new board members. Kenneth M. Roberts is a partner and executive committee member with Schiff Hardin LLP in Chicago, where he serves as co-chair of the construction law group. Roberts received his undergraduate degree and law degree from the University of Iowa.

Mark A. Kirk is partner and managing director of Cleveland-based private equity firm Linsalata Capital Partners. Prior to joining Linsalata in 2001, Kirk was president, CEO, and director of Scott Technologies. Kirk received his bachelor's degree from Harding University, Searcy, Arkansas.

Robert G. Sachse has served as executive vice president of Alliance Resource Partners LP in Tulsa since August 2000. From August 2000 to January 2007, Sachse also served as vice chairman of the board of Alliance Holdings GP, the managing general partner of ARLP. He holds a bachelor's degree from Trinity University and a juris doctorate degree from the University of Tulsa.

TD Williamson Inc. is a provider of pipeline equipment and services for onshore and offshore applications.

Enterprise prices $205M in Common Units; Duncan commits to buy $65M Units

Houston-based Enterprise Products Partners LP has priced a public offering of 9,600,000 common units representing limited partner interests and granted the underwriters a 30-day option to purchase up to 1,440,000 additional common units to cover over-allotments, if any. The proceeds, roughly $205 million, will be used to reduce revolving credit facility debt and to finance capital expenditures and other growth projects.

Citi, Barclays Capital, Morgan Stanley, UBS Investment Bank and Wachovia Securities are joint book running managers for the offering.

Additionally, Dan L. Duncan, its founder and chairman of the board of directors of its general partner, has committed to reinvest $65 million of Enterprise distributions to purchase newly issued Enterprise common units through the partnership's distribution reinvestment plan.

The investment will be made through his private company EPCO Inc. and its affiliates. Duncan says he would also consider investing up to $260 million in newly issued equity of Enterprise Products in 2009, including the $65 million reinvestment in February, to support capital raising efforts.

Colonial Pipeline names president, CEO

Colonial Pipeline Co. named Tim Felt president and chief executive officer effective Jan. 18. He succeeds Norm J. Szydlowski, who is retiring as Colonial Pipeline's top officer.

Felt has been president and CEO of Explorer Pipeline since 2000. He is vice-chairman of the Association of Oil Pipelines and serves on the American Petroleum Institute's pipeline committee. Felt also is chairman of the Common Ground Alliance, an organization dedicated to preventing damage to all underground facilities, including pipelines.

GE unveils integrity management system for pipeline operators

GE Oil & Gas' PII Pipeline Solutions has introduced Integrity Management System (IMS), a software system to help pipeline operators manage the integrity of their pipelines.

GE is launching IMS as part of PipeView Integrity, its portfolio of integrated pipeline integrity management and engineering solutions and services to help the oil and gas industry comply with increasingly stringent integrity reporting and maintenance regulations.

By using IMS, operators can manage all aspects of their pipeline integrity process, from setting integrity goals to assessing pipeline conditions and risks to planning and tracking mitigation, assessment and maintenance activities.

Duncan Energy pays $730M for Enterprise Products Partners interests

Duncan Energy Partners LP has acquired partnership interests in three midstream energy companies from affiliates of Enterprise Products Partners LP in a transaction valued at $730 million.

Duncan Energy acquired a 51% membership interest in Enterprise Texas Pipeline LLC; a 51% general partnership interest in Enterprise Intrastate LP; and a 66% general partnership interest in Enterprise GC LP.

In aggregate, these companies own more than 8,000 miles of natural gas pipelines with 5.6 bcf/d of capacity; a leased natural gas storage facility with 4.4 bcf of storage capacity; more than 1,000 miles of natural gas liquids pipelines; approximately 18 million barrels of leased NGL storage capacity; and two NGL fractionators with a combined fractionation capacity of 87 thousand barrels per day. All of these assets are located in Texas.

Duncan Energy paid Enterprise $280.5 million in cash and issued to Enterprise roughly 37.3 million of Class B units of Duncan Energy having a market value of $449.5 million. Duncan Energy funded the cash portion of the consideration with proceeds from a borrowing under a three-year bank term loan, which was executed in April 2008 and became effective with the completion of this transaction.

Duncan Energy also received proceeds from a $500,000 offering of Duncan Energy common units purchased by an affiliate of Enterprise. Together with the ownership of 5.4 million Duncan Energy common units received in connection with Duncan Energy's initial public offering, Enterprise now owns approximately 74% of the outstanding limited partner units of Duncan Energy.

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