The various owners of the Black Marlin Pipeline System, a75-mile long natural gas and condensate gathering system in theGulf of Mexico, have sold the line to Williams Field Services for$9.25 million. The line was purchased from Blue Dolphin Energy, a50% owner, MCNIC Pipeline & Processing Co., a 33.33% owner, andWBI Holdings, Inc., a 16.67% owner. The sale includes related shorefacilities servicing the High Island area.

Ivar Siem, chairman of primary owner Blue Dolphin, said thecompany had purchased Black Marlin in early 1999 “during a periodwhen the system had experienced lower throughput volumes due tolimited drilling activity in the High Island area. Since then theactivity level has been very high and significant additionalreserves have been discovered,” Siem added. “This is an opportunityfor us to realize good value for the asset. We can re-deploy aportion of the sale proceeds to other niche pipeline opportunitiesin the Gulf.”

Blue Dolphin has pending an option agreement, which must beexecuted by Feb. 16, with a third party to acquire another pipelinesystem in the western Gulf.

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