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    Shell Gets to Work in Gulf of Mexico

    Begins pipeline that boasts a capacity of 180,000 barrels per day.

    HOUSTON -- Shell Pipeline Co., a subsidiary of Shell Oil Products US, began operations on the seajack Pipeline, a 9.5 mile, 20-inch diameter pipeline that connects the Caesar Oil Pipeline to the Amberjack Pipeline System in the Gulf of Mexico, the company reported.

    "This connection provides additional market flexibility for Caesar shippers and also provides improved flow assurance for Caesar-connected production," said Mark Hurley, president of Shell Pipeline Co. "It will be a great addition to our extensive pipeline network in the Gulf of Mexico."

    Costs were not disclosed for the pipeline that has a capacity of 180,000 barrels per day.

    In other Shell news, the first contracts for the development of the Ostra, Abalone and Argonauta fields in the BC-10 deepwater block offshore Espirito State, Brazil have been created. BC-10 is located southeast of the city Vitoria, in water 1,500 to 2,000 meters deep. The plans call for phased development, with the first being the creation of three fields. The second phase will be the development of a fourth field.

    The primary contracts include the leased floating production, storage and offloading vessel with a 100,000-barrel-per-day oil processing capacity with a 10-well commitment. The first oil production is expected to commence at the turn of the decade.

    "The BC-10 development is a key milestone in the commercialization of heavy oil in Brazil's deepwater," said Martin Odum, executive vice president of EP Americas. "It is also a significant step towards Shell's objective to deliver new material oil and to establish a core upstream presence in Brazil. Shell and partners have steadily invested in exploration, appraisal and the technology development required to deliver the BC-10 development."

    The development will be the first full field development based on subsea oil and gas separation and pumping. Technology requirements include artificial deepwater lift via high power electric pumps in the seabed, according to the company.

    Shell Pipeline Co. transports more than two billion barrels of crude oil and refined products annually. Shell Oil Products US is a unit of Shell Oil Co., a marketer and refiner of gasoline and petroleum products around the world.

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