Valero Energy Corporation has announced that it has signed an agreement to sell its 50% indirect equity interest in the Cameron Highway Oil Pipeline Co. to Genesis Energy L.P. for US$ 330 million in cash.
Valero has owned its interest in Cameron Highway since the Gulf of Mexico pipeline system was constructed in 2004. Over the past two years, ValeroΒιΆΉ΄«Γ½Σ³»s share of annualised distributions from the partnership has ranged from US$ 27 million to US$ 33 million.
ΒιΆΉ΄«Γ½Σ³»This sale is part of our ongoing strategy of divesting non-core assets,ΒιΆΉ΄«Γ½Σ³» Valero Chairman and CEO Bill Klesse said. ΒιΆΉ΄«Γ½Σ³»At the end of a competitive process, we received an attractive price that unlocks significant value for our shareholders.ΒιΆΉ΄«Γ½Σ³»
The sale is expected to close in the fourth quarter, subject to regulatory approvals. The proceeds will be used for general corporate purposes.