Oiltanking Holding Americas has settled a lawsuit against Enterprise Products Partners and Teppco O/S Port System, its former partners in the proposed Texas Offshore Port System, after the two latter companies withdrew from the project.
The lawsuit was filed in April. Public filings by both Enterprise and Teppco report that each will record a $33.5 million (22.4 million) expense connected to the settlement, slightly less than the $34 million non-cash charge the companies reported when they left the project. The settlement removes any legal impediment to moving the project forward.
In August 2008, affiliates of Enterprise, Teppco, and Oiltanking formed a joint venture to design, construct, own, and operate a new Texas offshore oil port and pipeline system for delivering waterborne crude to refining centers along the upper Texas Gulf Coast.
TOPS design includes an offshore port, two onshore storage facilities with about 5.1 million bbl of crude storage capacity, and an associated 160-mile, 1.8 million b/d pipeline. Total cost of the project was estimated at $1.8 billion. TOPS would use two single-point mooring buoys in about 115 ft of water capable of offloading 100,000 bbl/hr.