Enterprise Announces Receipt of New Production Into Poseidon Oil Pipel

Enterprise Announces Receipt of New Production Into Poseidon Oil Pipeline System

    Business Editors/Energy Editors

    HOUSTON--(BUSINESS WIRE)--Jan. 5, 2005--Enterprise Products Partners L.P. (NYSE:EPD) today announced that the Poseidon Oil Pipeline began receiving crude oil from the Front Runner and Tarantula fields located in the central Gulf of Mexico. Enterprise owns 36 percent of Poseidon Oil Pipeline Company, L.L.C. ("Poseidon"), which owns and operates the Poseidon Oil Pipeline System that extends from the central Gulf of Mexico onshore into Southern Louisiana.
    Poseidon constructed, owns and operates the Front Runner oil pipeline, a new 36-mile, 14-inch pipeline that connects the Front Runner field with Poseidon's main pipeline at Ship Shoal Block 332. The Front Runner oil pipeline has the capacity to transport 65,000 barrels of crude oil per day and can be expanded to transport up to 125,000 barrels of crude oil per day.
    The Front Runner field, which is owned by Murphy Exploration and Production Company, Dominion Exploration and Production, Inc. and Spinnaker Exploration Company, is located in 3,100 feet of water in the Green Canyon Blocks 338 and 339 in the Central Gulf of Mexico. The field is currently producing in excess of 10,000 barrels per day of crude oil from the first of eight wells, and is expected to produce up to 60,000 barrels per day of crude oil and 110 million cubic feet per day of natural gas. Murphy estimates that the Front Runner and Front Runner South fields, together with the Quatrain field, in which Murphy also owns a working interest, have reserves of 150 to 230 million barrels of oil equivalent. The producers have dedicated a total of 13 contiguous blocks in this area to Poseidon.
    The Tarantula field is located in 480 feet of water in South Timbalier Block 308 and is connected to the Poseidon system by a new four-mile gathering pipeline owned by Enterprise. The field development, which is owned by Apache Corporation, consists of a fixed platform designed to initially handle 30,000 barrels of crude oil per day and production from four wells.
    "First production from the Front Runner and Tarantula oil fields is a major milestone in the development of the Poseidon system," said O.S. Andras, vice chairman and chief executive officer of Enterprise. "The new Front Runner pipeline will also benefit Poseidon by providing new pipeline capacity into the prolific Southern Green Canyon oil basin in the deepwater Gulf of Mexico. The Poseidon pipeline began receiving crude oil produced from the Marco Polo field in the Southern Green Canyon area during the third quarter of 2004, and should see significant increases in production when the K2 and K2 North fields come on in mid-2005."
    The owners of Poseidon Oil Pipeline Company, L.L.C. and their ownership interests, in addition to Enterprise's 36 percent interest, are Shell Oil Products U.S., which owns a 36 percent interest, and Marathon Oil Company, which owns a 28 percent interest. The Poseidon system, which was constructed in 1996, is a major sour crude oil pipeline built in response to the increased demand for additional sour crude oil pipeline capacity in the central Gulf of Mexico. Visit Poseidon on the Web at www.poseidonoil.com.
    Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of over $13 billion, and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through 31,000 miles of onshore and offshore pipelines and is an industry leader in the development of midstream infrastructure in the Deepwater Trend of the Gulf of Mexico. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the Web at www.epplp.com.
    This press release contains various forward-looking statements and information that are based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:

--	fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
--	the effects of the combined company's debt level on its future financial and operating flexibility;
--	a reduction in demand for its products by the petrochemical, refining or heating industries;
--	a decline in the volumes of NGLs delivered by its facilities;
--	the failure of its credit risk management efforts to adequately protect it against customer non-payment;
--	terrorist attacks aimed at its facilities;
--	the failure to successfully integrate our operations with GulfTerra's or any other companies we acquire; and
--	the failure to realize the anticipated cost savings, synergies and other benefits of the merger with GulfTerra.

    Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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CONTACT: Enterprise Products Partners L.P., Houston Randy Burkhalter, 713-880-6812 www.epplp.com

KEYWORD: TEXAS LOUISIANA INDUSTRY KEYWORD: OIL/GAS ENERGY SOURCE: Enterprise Products Partners L.P.

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