Offshore Oil Pipelines

The partnership owns interests in approximately 909 miles of offshore crude oil pipeline systems in the Gulf of Mexico. In addition to being strategically located in the vicinity of some of the most prolific oil-producing regions in the Gulf of Mexico, Enterprise's oil pipeline systems are parallel to and connect with key segments of some of its natural gas pipeline systems and offshore platforms, which contain separation and handling facilities. This distinguishes Enterprise from its competitors by allowing it to provide some producing properties with a unique single point of contact through which they may access a wide range of midstream services and assets.

Typically, our crude oil pipelines receive oil from offshore production facilities or other pipelines and deliver the oil to either onshore locations or to other interconnecting offshore pipelines. In general, our oil pipeline systems generate revenue based on either a direct gathering fee per barrel or on purchase and sale agreements which provide an implicit fee per barrel received. As a result, the partnership is not exposed to direct commodity price risk. A substantial portion of the revenues generated by our oil pipeline systems are attributed to production from reserves that have been committed under life-of-reserve dedications.