Horseshoe

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 ofprimary owner Blue Dolphin, said the company had purchased BlackMarlin in early 1999 “during a period when the system hadexperienced lower throughput volumes due to limited drillingactivity in the High Island area. Since then the activity level hasbeen very high and significant additional reserves have beendiscovered,” Siem added. “This is an opportunity for us to realizegood value for the asset. We can re-deploy a portion of the saleproceeds to other niche pipeline opportunities in the Gulf.”