CORRECTING and REPLACING Enterprise and Valero Announce First Deliveri

CORRECTING and REPLACING Enterprise and Valero Announce First Deliveries of Domestic Crude Oil to Texas Gulf Coast Via Cameron Highway Oil Pipeline System

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

To download high-resolution, print-ready JPEG images, click on the thumbnail image above. WARNING: these images are very large (800K+) Click here for caption

    Business Editors/Energy Editors
    CORRECTION...
    MULTIMEDIA AVAILABLE:
    http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4860094

    HOUSTON--(BUSINESS WIRE)--April 8, 2005--In BW5258 issued April 8, 2005: Please replace the release with the following corrected version due to clarifying edits.

    The corrected release reads:

    ENTERPRISE AND VALERO ANNOUNCE FIRST DELIVERIES OF DOMESTIC CRUDE OIL TO TEXAS GULF COAST VIA CAMERON HIGHWAY OIL PIPELINE SYSTEM

    Enterprise Products Partners L.P. (NYSE:EPD) and Valero Energy Corporation (NYSE:VLO) announce the first deliveries of domestic crude oil production to major refining markets on the Texas Gulf Coast via the recently completed Cameron Highway Oil Pipeline System. This 390-mile pipeline is the longest offshore oil pipeline in the U.S. and is the first offshore link between the deepwater developments located off the coast of Texas and Louisiana.
    Cameron Highway, operated by Enterprise, is a $500 million joint venture between Enterprise and Valero. The pipeline was built to move crude oil production from the large deepwater developments in the Central Gulf of Mexico, and future discoveries in the Western Gulf, to the United States' largest refining complex on the Texas Gulf Coast, including major markets in Port Arthur and Texas City, Texas. The pipeline has the capacity to deliver up to 600,000 barrels of oil per day, and provides a lower cost alternative than pipelines located onshore in Louisiana.
    Cameron Highway commenced service earlier this year and producers in the Southern Green Canyon area of the Gulf of Mexico are in the initial stage of completing pre-drilled wells from the Mad Dog and Holstein fields. The first five wells have been connected and the pipeline is currently delivering approximately 80,000 barrels per day (BPD) of domestic crude oil production to Texas. Production is expected to ramp up throughout 2005 and 2006 as additional wells are completed.
    "We are pleased to announce Cameron Highway's first deliveries of crude oil to the Texas Gulf Coast," said Robert G. Phillips, Enterprise's President and Chief Executive Officer. "This pipeline creates value for both the producers in the deepwater who can deliver their production to larger and higher valued markets and to the refining industry seeking new sources of supply. The pipeline's wide loop westward across the Gulf of Mexico to the refining markets in Texas should make Cameron Highway the crude oil pipeline of choice for new deepwater developments in this area and highlights Enterprise's commitment to building new energy infrastructure to meet America's growing energy requirements. Additionally, the Cameron Highway project is an example of the broad set of midstream organic growth projects that will drive future value for our investors."
    Cameron Highway also represents the shift toward an increasing need to bring a medium-sour crude oil mix to the Texas Gulf Coast refining market. Although sweet, light crude oils are easier to refine and represent an estimated one-third of world refinery consumption, the long history of higher demand for sweeter crude oil has depleted its availability. Sweet crude now constitutes only about one-fifth of remaining world oil reserves.
    Pipeline access to this crude oil through the Cameron Highway route is a great fit for Valero, which has seven refineries tied to the company's coastal distribution system anchored in Texas. Although each refinery has a different configuration of assets that run different specifications of crude, Valero optimizes operations by running the network as if it were one big refinery. Valero has strongly invested in a complex refining system that processes the heavier, sour crude oils, which currently make up about 70 percent of Valero's crude slate, to successfully take advantage of the widening price spread between sweet and sour crude oils.
    "This is a primary reason why Valero was so interested in becoming a 50-percent partner in the Cameron Highway project," said Bill Greehey, Valero's Chairman of the Board and Chief Executive Officer. "This project provides an opportunity for Valero to secure a stable source of high-quality domestic crude oil at a significant savings compared to foreign-sourced alternatives. As all of these new reserves in the deepwater Gulf of Mexico are developed, they will be very valuable to a company like ours, which processes heavier, sour crude feedstocks. We are running Cameron Highway crude oil at one of our Gulf Coast refineries today. So, not only is this a very strategic investment for the company, but our equity participation in this project is also expected to yield a steady flow of income to Valero and its shareholders," he said.
    Cameron Highway is supported by life-of-lease dedications with BP, BHP Billiton and Unocal to move their production from the Holstein, Mad Dog and Atlantis fields, and with Kerr McGee to move their production from the Constitution and Ticonderoga fields. Additionally, Cameron Highway has contracted with Shell under a term agreement to move its 50 percent share of production from the Holstein field.
    Throughout 2005 and 2006, it is anticipated that the pipeline will carry increased deliveries from the Holstein and Mad Dog fields located in the Southern Green Canyon area of the deepwater Gulf of Mexico, with additional crude oil coming from the initial start up of production from the Atlantis, Constitution and Ticonderoga fields in 2006.

    About Enterprise Products Partners L.P.

    Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of more than $14 billion, and a leading North American provider of midstream energy services to producers and consumers of natural gas, Natural Gas Liquids (NGLs) and crude oil. Enterprise transports natural gas, NGLs and crude oil through 32,500 miles of onshore and offshore pipelines, and is an industry leader in the development of midstream infrastructure in the Deepwater Trend of the Gulf of Mexico. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at www.epplp.com.

    About Valero

    Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 20,000 employees and annual revenue of approximately $55 billion. The company owns and operates 15 refineries throughout the United States, Canada and the Caribbean. Valero's refineries have a combined throughput capacity of approximately 2.5 million barrels per day, which represents approximately 12 percent of the total U.S. refining capacity. Valero is also one of the nation's largest retail operators with more than 4,700 retail and wholesale branded outlets in the United States, Canada and the Caribbean under various brand names including Diamond Shamrock, Shamrock, Ultramar, Valero, and Beacon. For more information, please visit www.valero.com.
    Statements contained in this press release that state Enterprise's or Valero Energy Corporation's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "believe," "expect," "should," "estimates," and other similar expressions identify forward-looking statements. It is important to note that each company's actual results could differ materially from those projected in its forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. For more information concerning factors that could cause actual results to differ from those expressed or forecast, see Enterprise's filings with the Securities and Exchange Commission("SEC") and available on Enterprise's website at www.epplp.com and/or Valero's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the SEC and available on the company's website at http://www.valero.com. These factors include potential changes in gasoline, crude oil, distillate and other commodity prices, varying market conditions, actions of government, hostilities in oil producing regions, adverse rulings in litigation and potential delays or other changes in work and repair schedules. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:

--	fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
--	the effects of the combined company's debt level on its future financial and operating flexibility;
--	a reduction in demand for its products by the petrochemical, refining or heating industries;
--	a decline in the volumes of NGLs delivered by its facilities;
--	the failure of its credit risk management efforts to adequately protect it against customer non-payment;
--	terrorist attacks aimed at its facilities;
--	the failure to successfully integrate our operations with GulfTerra's or any other companies we acquire; and
--	the failure to realize the anticipated cost savings, synergies and other benefits of the merger with GulfTerra.

    Enterprise and Valero undertake no obligation to update or publicly release the result of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur or which the companies become aware of after the date of this release, or to reflect the occurrence of unanticipated events.

MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4860094

--30--AA/ho*

CONTACT: Enterprise Products Partners L.P., Houston Investor Relations Randy Burkhalter, 713-880-6812 www.epplp.com or Valero Energy Corporation Mary Rose Brown, 210-345-2314 maryrose.brown@valero.com

KEYWORD: TEXAS LOUISIANA INDUSTRY KEYWORD: OIL/GAS ENERGY PHOTO PHOTOWIRE SOURCE: Enterprise Products Partners L.P. PHOTO: 43170

Copyright Business Wire 2005