Texas-based midstream energy services company Enterprise Products has completed the sale of its offshore Gulf of Mexico pipelines and services business to Genesis Energy for $1.5bn, in an all cash transaction.

The initial announcement regarding the sale of assets was made earlier this month.

Enterprise serves deepwater fields in the Gulf of Mexico off the coast of Texas, Alabama Louisiana, and Mississippi.

The assets include 2,350 miles of oil and natural gas pipelines and six offshore hub platforms.

"The proceeds from this sale significantly enhance our financial flexibility."

Following the deal, Genesis has become the soul owner of the Cameron Highway Oil Pipeline systems and the Southeast Keathley Canon Oil Pipeline.

With the newly acquired offshore business assets, Genesis plans to expand the company’s existing offshore pipelines business.

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The acquisition is also likely to help the company develop organic growth projects in its offshore pipeline segment.

According to estimates by Energy Department in Washington, the Gulf of Mexico is likely to account for 17% of US crude production in 2016, which is 2% up when compared with last year, reported Bloomberg.

Enterprise general partner chief executive officer Michael A Creel said: "The proceeds from this sale significantly enhance our financial flexibility.

"Including the proceeds we received today, our current liquidity, consisting of unrestricted cash and available borrowing capacity under our credit facilities is over $6bn.

"This liquidity gives us flexibility in funding our growth capital projects, including attractive growth projects in the Eagle Ford and Permian regions, while eliminating our need to raise equity capital for the remainder of 2015 based on current expectations."