[CANADA] Enbridge and BP, to develop delivery system
Enbridge, Canada's biggest pipeline company, and BP agreed to develop a delivery system to transport Canadian heavy crude oil from Flanagan, Ill., to Houston and Texas City. The system is expected to be in service by late 2012, the companies said Friday. The system will have capacity for 250,000 barrels of oil a day, the companies said.
The system will make use of existing BP pipelines north of Cushing, Okla.
New pipelines would be built south of Cushing to connect with Houston and possibly Nederland.
Enbridge Chief Executive Officer Pat Daniel has been planning to use capital from asset sales to expand Enbridge's pipeline systems. The project also coincides with the expected ramp-up of crude oil production in Western Canada, which has been curtailed by rising costs.
The Jordan Co., a private equity firm, is acquiring Harvey Gulf International Marine in partnership with two of its current owners and executives in a transaction valued at $500 million.
Harvey Gulf International Marine, based in Harvey, La., is a 53-year-old family-owned towing and offshore supply company operating in the Gulf of Mexico. The Jordan Co. will acquire a 76 percent stake in the marine firm and members of the Guidry family will retain the remainder.
Shane Guidry will continue in his role as chairman and chief executive. His brother, Shawn Guidry, will remain as executive vice president and chief operating officer. Robert Gwinn has been promoted to president and chief sales officer.
Meridian Resource Corp. said initial production test results on its Goodrich-Cocke No. 6 well in Iberia Parish, La., showed a gross daily flow rate of up to 2,500 barrels of oil per day. State production allowables, however, dictate that the well be limited to 800 barrels per day, Meridian Resource said.
Linn Energy closed its sale of oil and gas properties in the Verden area of Oklahoma to Laredo Petroleum for $185 million.