Enbridge Inc. has entered into a letter of intent with Chevron USA, Inc., Statoil Gulf of Mexico LLC and Marubeni Oil & Gas (USA) Inc. to construct and operate an oil pipeline from the proposed Big Foot ultra deepwater development in the Gulf of Mexico. This pipeline project is complementary to Enbridge’s plans to construct the Walker Ridge Gathering System which will provide natural gas transportation for the proposed Chevron-operated Jack, St. Malo and Big Foot fields.
The estimated cost of the Big Foot Oil Pipeline, which will be located about 170 miles south of the coast of Louisiana, is US$250 million. Combined with the Walker Ridge Gathering System project, the proposed oil pipeline would bring the total Enbridge investment for the projects to US $750 million.
The Big Foot Oil Pipeline reinforces Enbridge’s presence as the leading pipeline services provider in the deepwater Gulf of Mexico region, said Pat Daniel, President/CEO, Enbridge Inc.
Added Daniel, “The Big Foot Oil Pipeline and Walker Ridge Gathering System projects further complement Enbridge’s strong portfolio of commercially secured projects and support our expectation that we will be able to extend our 10 percent plus 2008-2013 average growth rate at a similar rate well beyond 2013.”
The Big Foot Oil Pipeline will consist of 40 miles of 20-inch pipe at depths up to 5,900 feet and will have capacity to transport up to 100,000 bopd. Big Foot will deliver to a sub-sea connection on existing deepwater pipeline infrastructure.