UPDATE 1-EOG receiving Bakken crude at Louisiana terminal

Wed May 9, 2012 2:30pm GMT
 

NEW YORK May 9 (Reuters) - EOG Resources said on Wednesday it received its first crude from the Bakken shale oil fields in North Dakota at the St. James, Louisiana terminal on April 15.

The terminal will have capacity to handle 50,000 barrels-per-day (bpd) of crude in June and 70,000 bpd by year end, the company said in its first-quarter earnings call.

The Houston-based oil and gas firm plans to market its Eagle Ford crude in the Houston and Corpus Christi markets to capture the best value for its increasing output.

"Not all of EOG's oil production will be sold at St. James," company CEO Mark Papa said.

Papa added that the Louisiana terminal will not be fully operational for the entire second quarter as his company "irons out the startup takes."

EOG also confirmed it entered into a partnership with Japan's Mitsubishi Corp to develop the Tuscaloosa shale in Louisiana.

Trade publications, citing court documents in Louisiana, had reported a joint-venture partnership between MCX Exploration, a Mitsubishi subsidiary, and EOG Resources in two Tuscaloosa shale Parishes in Louisiana.

The reports had also indicated the partnership was effective as of March 30.   Continued...

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