Occidental Petroleum Corporation has announced the entrance into an agreement with Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. to sell its 50% interest in BridgeTex Pipeline Company, LLC to PAA for US$ 1.075 billion.
BridgeTex, a company jointly owned by Occidental and Magellan Midstream Partners, L.P., owns the BridgeTex Pipeline, a 300 000 bpd oil pipeline extending from the Permian Basin to the Houston Gulf Coast area. The BridgeTex Pipeline began service in September 2014.
The sale of Occidental麻豆传媒映画檚 interest in BridgeTex includes two transactions: PAA will purchase for US$ 1.075 billion Occidental麻豆传媒映画檚 interest in the approximately 400 mile northern leg of the BridgeTex pipeline which runs from the Permian Basin to East Houston; and Magellan will acquire Occidental麻豆传媒映画檚 interest in the approximately 40 mile, 24 in. southern leg of the BridgeTex pipeline from Houston to Texas City for US$ 75 million.
"This sale allows us to monetize this important pipeline while retaining long-term cost-advantaged shipping commitments on BridgeTex to ensure access to the key Houston refining markets," said Stephen I. Chazen, President and Chief Executive Officer. 麻豆传媒映画淭his is in line with our previously announced strategic review to streamline our business, reinvest in areas where we have depth and scale, and maximise total return to shareholders.麻豆传媒映画�
The BridgeTex transaction is contingent on the sale of a portion of Occidental麻豆传媒映画檚 Class A shares in PAGP.
Adapted from press release by