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Offshore Oil Pipelines

The partnership owns interests in approximately 914 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.

Our most significant investment in offshore oil pipelines is a 50% interest in the Cameron Highway Oil Pipeline System. An affiliate of Valero Energy Corporation is our joint partner in this approximately $500 million pipeline. This has been a very successful project for our partnership with projected reserves and initial production from anchor fields exceeding our expectations.

This 374-mile pipeline has the capacity to move up to 500 MBPD of crude oil from deepwater areas of the Gulf of Mexico, primarily the South Green Canyon area, for delivery to refineries and terminals in the central and western Gulf of Mexico to refineries on the Texas Gulf Coast. Its wide loop westward across the Gulf to the larger market in Texas makes Cameron Highway an attractive pipeline for new deepwater developments in this area.

Cameron Highway is supported by life-of-reserve dedications with BP, BHP Billiton and Unocal for their production from the Holstein, Mad Dog and Atlantis fields in the Southern Green Canyon area and with Kerr McGee for its production from the Constitution and Ticonderoga fields. Additionally, Cameron Highway has contracted with Chevron for their share of production form the K2 field and Petrobras for their portion of the Cottonwood field. The Holstein field began producing in December 2004, and first production from the Mad Dog field began in January 2005. Production from the Constitution and Ticonderoga fields began in February 2006. Atlantis began production in December 2007.

Facility	Ownership Interest	Miles	Operator	Function
Crude Oil Pipelines
Poseidon System	36.0%	372	Enterprise	Offshore crude oil pipeline system that gathers production from the outer continental shelf in the Gulf of Mexico and transports it onshore to Houma, Louisiana.
Allegheny System	100%	43	Enterprise	Offshore crude oil system that connects the Allegheny platform in the Green Canyon area of the Gulf of Mexico with Poseidon at the Ship Shoal 332 platform.
Typhoon Oil Pipeline	100%	17	Enterprise	Offshore crude oil system that connects the Typhoon platform in the Green Canyon area of the Gulf of Mexico to the Shell Boxer platform, which provides access to Poseidon through a third party pipeline.
Marco Polo Oil Pipeline	100%	37	Enterprise	Gathers crude oil from the Marco Polo hub platform into the Allegheny pipeline.
Cameron Highway Oil Pipeline System	50%	374	Enterprise	Crude oil pipeline system designed to gather Deepwater Trend production, primarily from the South Green Canyon area of the Gulf of Mexico, for delivery to refineries and terminals in Port Arthur and Texas City, Texas.
Tarantula Oil Pipeline	100%	4	Enterprise	A newly constructed oil pipeline that connects the Tarantula field located in South Timbalier Block 308 in the central Gulf of Mexico to the Poseidon System.
Constitution Oil Pipeline	100%	67	Enterprise	Offshore oil pipeline to be constucted that will connect the Kerr-McGee-owned Constitution Cell Spar in Southern Green Canyon Block 680 to the Cameron Highway and Poseidon pipeline systems on our platform in Ship Shoal Block 332.