Blue Dolphin Energy Company. The Group's principal activity is to explore and produce oil and gas in the western and central Gulf of Mexico. The Group operates in two business segments: Oil and gas exploration and production and Pipeline operations. The Oil and gas exploration and production activities include the exploration, acquisition, development, operation and disposition of oil and gas properties. The Pipeline operations include the Group's developmental-stage mid-stream projects. The Group's operations are carried out through its subsidiaries. The Group's major customer's include Houston Exploration and Production Company and Apache Corporation. Oil and gas exploration and production accounted for 61% of 2002 revenues and Pipeline operations, 39%.