HOUSTON, Jan. 13 (UPI) -- Midstream company Enbridge said it was working with its upstream partners at Hess Corp. to oversee pipeline developments from a Gulf of Mexico oil field.
Enbridge said it will build, own and operate the $130 million project that will start in the deepwater Stampede project and terminate 16 miles away with a connection to a third-party pipeline system.
"This project is an attractive investment opportunity for Enbridge and we are pleased to be working with Hess and the other producers on this development," Greg Harper, president of pipeline and processing systems for Enbridge, said in a Monday statement.
Hess Corp. launched development plans for its deepwater Stampede project in the Gulf of Mexico in late October.
The company said it expects to pull at most 80,000 barrels of oil per day from the project, located in the Green Canyon reserve area of the Gulf of Mexico, about 115 miles south of Louisiana. Total estimated recoverable reserves for Stampede are estimated at between 300 million and 350 million barrels of oil equivalent.
Hess plans to drill as many as six production wells in the Stampede area by the fourth quarter of 2015. First production from the field, as well as pipeline operations from Enbridge, is expected by 2018.
Hess owns Stampede alongside its program partners at Norwegian energy company Statoil, the U.S. subsidiary of Chinese-controlled Nexen and Union Oil Co. of California, a unit of Chevron.
