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Shell Midstream transportation network sees boost from offshore project startup

The start-up of oil production from the Royal Dutch Shell PLC-operated Appomattox floating platform is providing a boost for Shell Midstream Partners LP's transportation systems.

The midstream master limited partnership announced May 24 that systems owned by Proteus Oil Pipeline Company, LLC and Endymion Oil Pipeline Company, LLC saw increased volumes of crude oil being transported via their connection to the newly commissioned Mattox Pipeline.

The Mattox Pipeline, jointly owned by Shell subsidiary Shell GOM Pipeline Company LLC and CNOOC Ltd. subsidiary CNOOC Petroleum Sales USA Inc., has a capacity of 300,000 barrels per day and transports oil from the platform to the Proteus and Endymion systems. The systems are connected to onshore markets via the Clovelly storage hub in Louisiana. Shell Midstream Partners owns a 10% stake in Proteus Oil Pipeline and Endymion Oil Pipeline.

"Over the last three years, most of the 19 sanctioned projects across the Gulf of Mexico flow through our systems, giving us the ideal position to capture growth'" said Shell Midstream Partners CEO Kevin Nichols.

Appomattox, which started production on May 23, currently has an expected production capacity of 175,000 barrels of oil equivalent per day and is a joint venture owned by Shell and CNOOC subsidiary CNOOC Petroleum Offshore SA Inc.