Shell and Enterprise's Stingray Pipeline Transports Unocal's Deep Shelf Harvest Development in the Gulf of Mexico

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Sep 15, 2003

Shell Gas Transmission, LLC (Shell) and the operating partnership of Enterprise Products Partners L.P. (NYSE:EPD) (Enterprise) today announced that their Stingray Pipeline Company, L.L.C. (Stingray) has executed life of lease contracts to provide natural gas transportation services to Unocal for its West Cameron Block 44 Harvest development, which is producing over 45 million cubic feet per day of natural gas.

Stingray is jointly owned by Shell and Enterprise. Unocal constructed a 12" diameter gas pipeline to connect the Harvest development to Stingray's 36" pipeline. Stingray offers five downstream takeaway pipeline options for Unocal.

"Unocal's Harvest deep shelf development represents an important addition to Stingray's supply in the Gulf of Mexico," said Doug Krenz, President of Shell Gas Transmission, LLC. "Stingray is well positioned to serve as the transportation solution for deep shelf gas discoveries."

"Harvest is the first deep shelf natural gas discovery in the Gulf of Mexico to connect to the Stingray gas pipeline system," said O.S. "Dub" Andras, president and chief executive officer of Enterprise. "Stingray's large diameter pipeline is strategically positioned in this area of the Gulf to serve both deep shelf discoveries and deepwater developments. Stingray will also transport natural gas from the Gunnison development, which is the first deepwater discovery in this area of the Gulf."

The Harvest discovery is located at West Cameron Block 44, in 30 feet of water. Unocal owns a 41% working interest and is the operator. The other owners of Harvest are Marlin Energy Offshore L.L.C. (formerly Duke Energy Hydrocarbons, LLC) (37%), The Williams G. Helis Company, L.L.C. (20%) and Houston Energy, L.P. (2%). "Unocal is developing Harvest with a Mobile Offshore Production Unit in order to begin production quickly," said Joseph A. Blount, Jr., President of Unocal Energy Trading Inc.

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