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Texaco, Leviathan Form Pipeline Joint Venture

Texaco Inc. and Leviathan Gas Pipeline Partners, L.P formed the Poseidon Oil Pipeline Company L.L.C., a 50/50 joint-venture company which will construct, own and operate the Poseidon pipeline. Poseidon — the first phase of which will be available for use by area producers this month — is designed to service new deepwater and subsalt Central Gulf of Mexico production. To be operated by Texaco, Poseidon will be located in the central Gulf of Mexico and connect to the company's extensive onshore pipeline system at Houma, La.

Leviathan began the construction of the initial phase of Poseidon in August 1995. That phase runs from Garden Banks Block 72 for approximately 117 miles along the edge of the Outer Continental Shelf to Leviathan's platform at Ship Shoal Block 332 before heading to shore at Caillou Island, La.

Ultimately, Poseidon will consist of approximately 200 miles of 16- to 24-in. diameter pipeline capable of delivering up to 400,000 barrels per day of sour crude oil production to multiple market outlets in onshore Louisiana. The pipeline is unique in its position to service deepwater and subsalt discoveries along this route and will extend the pipeline infrastructure into these important new development areas.

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