Substantially all of our operations are carried out through our wholly owned subsidiaries:

• Blue Dolphin Pipe Line Company;
• Blue Dolphin Petroleum Company;
• Blue Dolphin Exploration Company; and
• Blue Dolphin Services Co.

Our activities fall within two primary business segments:  (i) pipeline transportation and related services for producers/shippers, and (ii) oil and gas exploration and production.

Pipeline Operations

We currently own interests in and operate the following pipeline assets:

Spanning more than 40 miles, the Blue Dolphin Pipeline System is our primary pipeline asset.  The system includes the Blue Dolphin Pipeline, an offshore platform for separation, metering and compression, the onshore Buccaneer oil pipeline, onshore facilities including 85,000 barrels of above ground tankage, separation and dehydration facilities, a barge loading terminal and 360 acres of land.

The Blue Dolphin Pipeline is a 20-inch crude oil and natural gas pipeline approximately 40 miles long that runs from our offshore platform in the Galveston area in the Gulf of Mexico to our onshore facilities near Freeport, Texas.  The pipeline also connects the onshore facilities to an intrastate pipeline system and major chemical plants complex.

The onshore facilities provide separation for incoming natural gas, crude oil and condensate, as well as dehydration of natural gas, and stabilization and storage of crude oil and condensate.

The onshore Buccaneer Pipeline, a 2 mile, 8-inch oil pipeline, connects the storage tanks at our onshore facility to our barge loading terminal on the Intercoastal Waterway.

The Galveston Area Block 350 Pipeline is an 8-inch pipeline approximately 13 miles long in the Galveston area of the Gulf of Mexico with a subsea interconnection to a major interstate pipeline system.

The Omega Pipeline is a 12-inch pipeline approximately 18 miles long extending from the West Cameron area off the Louisiana coast to the High Island area off the Texas coast in the Gulf of Mexico.  The pipeline is currently inactive.

< Blue Dolphin Pipeline Asset Profile >

Oil and Gas Exploration and Production

Blue Dolphin's oil and gas exploration and production activities, which include the exploration, acquisition, development and operation of oil and gas properties, are focused in the Western Gulf of Mexico off the coasts of Texas and Louisiana.  We currently own interests in three producing blocks in the High Island area in the Gulf of Mexico and two exploratory prospects for sale to industry.