Enterprise, Teppco exit from Texas Offshore Port System partnership

Enterprise Products Partners and Teppco Partners have announced that their respective affiliate partners in the Texas Offshore Port System partnership have exited from the port system, and have forfeited their investments and combined two-thirds ownership interest in the partnership.

In August 2008, affiliates of Enterprise, Teppco and Oiltanking Holding Americas have formed the Texas Offshore Port System partnership (TOPS) partnership to design, construct, operate and own a Texas offshore crude oil port and pipeline system that would facilitate delivery of waterborne crude oil cargoes to refining centers located along the upper Texas Gulf Coast.

The total cost of the project had been estimated at $1.8 billion. Enterprise, Teppco and Oiltanking each owned, through their respective subsidiaries, a one-third interest in the joint venture. The decision to dissociate from TOPS was in connection with a disagreement with the Oiltanking partner.

Oiltanking has alleged in a response to the notices of dissociation that the dissociation of the affiliates of Enterprise and Teppco was wrongful and in breach of the TOPS partnership agreement. Enterprise and Teppco believe that their actions in dissociating from the TOPS partnership are permitted by, and in accordance with, the terms of the TOPS partnership agreement and, should the need arise, intend to vigorously defend such actions.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon

Related terms: crude oil, oil, partnership, pipeline, texas