CorEnergy Infrastructure Trust will acquire the Grand Isle Gathering System (GIGS), a subsea, midstream pipeline system with related onshore facilities serving oil-producing fields in the shallow portion of the Gulf of Mexico.
GIGS is comprised of 153 miles of undersea pipeline, connects to seven oil fields, including four of the top 15 largest fields in the Gulf of Mexico shelf region with customers including ExxonMobil and Shell. It transports about 18,000 bpd of oil and 42,000 bpd of water with a capacity of 120,000 bpd.
The $245 million cash transaction with Energy XXI USA provides infrastructure to move oil and water from offshore fields onto land, and will enlarge and diversify the Company’s portfolio of REIT-qualifying energy infrastructure assets.
“Energy XXI is a quality operator with a dedicated team focused on increasing production and reserves in the GIGS area,” said CorEnergy CEO David Schulte. “The long-lived system, including the onshore facilities, will further diversify our growing infrastructure portfolio.”