Enbridge to build crude oil pipeline in ultra deepwater Gulf of Mexico

Canada-based Enbridge has entered into a letter of intent with Chevron USA, Statoil Gulf of Mexico and Marubeni Oil & Gas USA to construct and operate an oil pipeline from the proposed Big Foot ultra deepwater development in the Gulf of Mexico.

Enbridge has said that the proposed crude oil pipeline project is complementary to its previously announced 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 approximately $250 million. Combined with the Walker Ridge Gathering System project, the proposed oil pipeline would bring the total Enbridge investment for the projects to $750 million.

The Big Foot oil pipeline will consist of approximately 40 miles of 20-inch diameter pipe at depths of up to 5,900ft, and will have capacity to transport up to 100,000 barrels per day. Big Foot will deliver to a sub-sea connection on existing deepwater pipeline infrastructure.

Patrick Daniel, president and CEO of Enbridge, said: "The Big Foot oil pipeline reinforces Enbridge's presence as the leading pipeline services provider in the deepwater Gulf of Mexico region.

"We are particularly pleased with our expanding relationship with Chevron, one of the major operators in the region, and our growing oil pipeline business in the deepwater region, which has substantial production growth potential."

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