Genesis Energy said its Offshore Pipeline Transportation segment performed slightly below expectations during Q2 2026 as some operators experienced operational challenges and unplanned downtime at several fields connected to its offshore infrastructure, CEO Grant Sims said during the company’s earnings call August 6.
Sims said the Genesis pipeline network was available more than 99% of the time during the quarter but that fluctuations in production volumes were beyond its control, mainly resulting from changes in the timing of new wells coming online or wells needing intervention or remediation. He emphasized that deepwater Gulf operations were “multi-decade, if not multi-generational plays.”
“Putting aside the near-term noise and production nuances, the longer-term story in our Offshore Pipeline Transportation segment remains fully intact,” he said.
As an example, Sims cited BP’s decision to expand activity at its Atlantis production facility, which came online 19 years ago. BP, along with its partners Chevron and Woodside, will add two new subsea and water injection wells to help increase the pressure of target reservoirs, unlocking additional barrels to be recovered. The project is expected to add about 10 Mboe/d of production and tens of millions of barrels of additional ultimate recoveries, Sims said. All crude through the Atlantis facility moves on Genesis’ CHOPS pipeline.
Genesis noted several updates in its Offshore Pipeline Transportation segment:
- The first Monument well was successfully drilled; it is expected to be completed and producing in late 2026.
- The second Monument well is expected online in early 2027, followed by new wells at Shenandoah and Shenandoah South.
- Four Phase 1 Shenandoah wells are now online. A rig is on-site to perform remediation work on one of the wells.
- A fourth Salamanca well is online with sustained production of 40-42 Mb/d. A fifth well should be online as early as Q4 2026 at 50-60 Mb/d.
Shenandoah, operated by Beacon Offshore Energy, began production in July 2025 through Genesis’s SYNC pipeline. Monument and Shenandoah South are separate subsea developments operated by Beacon and tied back to the Shenandoah floating production unit (FPU), with Monument’s two wells expected online by early 2027 and Shenandoah South targeted for 2028. The Salamanca FPU, operated by LLOG, began production in September 2025 and flows through Genesis’s SEKCO and Poseidon systems.
The Salamanca FPU.
