Shell, Conoco Reach Pipeline Accord
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HOUSTON (AP) _ Shell Oil Co. will build an $87 million natural-gas and crude-oil pipeline project in the Gulf of Mexico to serve a development operated by Conoco Inc., the companies said Tuesday.
Conoco holds a 75 percent interest in the Magnolia field, while Ocean Energy Inc. holds the remaining 25 percent stake.
Shell Oil, a unit of Royal Dutch Petroleum Co., said it expects to complete construction of the pipelines in 2004. The Magnolia development will begin production in the fourth quarter of 2004.
Shell Gas Gathering LLC will build and operate a $47 million, 16-inch natural gas pipeline with a capacity of 275 million cubic feet per day.
Shell Pipeline Co. LLP will build and operate a $40 million, 14-inch oil pipeline with a capacity of 75,000 barrels per day.