Genesis Energy said its Offshore Pipeline Transportation segment experienced no weather-related shut-ins during Q3 2026, typically the most active part of the hurricane season, but volumes still came in lower than anticipated due to lower crude oil production at some facilities that flow exclusively through its pipeline network, the company said during its earnings call November 5.
The lower volumes were the result of “unplanned curtailments at a couple of our legacy connected fields, the continuing challenges from two of the initial wells at Shenandoah, and a planned turnaround at Salamanca that was moved forward from the fourth quarter into the third quarter,” CEO Grant Sims said. “As we said last quarter, we do not believe any of these items have longer-term negative implications for the ultimate recovery of reserves already discovered and being developed.”
The Shenandoah floating production unit (FPU; teal platform icon in map below), operated by Beacon Offshore Energy, began production in July 2025 through Genesis’s SYNC pipeline. The Salamanca FPU (orange platform icon), operated by LLOG, began production in September 2025 and flows through Genesis’s SEKCO and Poseidon systems.
Lower production will continue into Q4 2026 and into the early part of 2027, until four new, high-impact wells are completed and turned to production.
Other highlights from the earnings report:
- The company expects two new Monument wells, which will tie back to the Shenandoa FPU, to be online by the end of Q1 2027
- A fifth Shenandoah well is scheduled to be online by year-end 2027
- The expansion of the Shenandoah FPU to 140 Mb/d is progressing
