Enbridge Inc. (NYSE: ENB), Canada's largest pipeline company, said it would buy Murphy Oil Corp.'s (NYSE: MUR) Tupper Main and Tupper West gas plants in northeastern British Columbia for C$538 million (US$382 million).
The deal includes the sale of plants capable of processing up to 320 million cubic feet per day, Enbridge said on Jan. 27.
The assets would boost its natural gas footprint in Montney, one of the most attractive gas plays in North America, the company said.
The transaction, which is between Murphy Oil's Canadian unit Murphy Oil Co. Ltd. and Enbridge unit Enbridge G&P Ltd. Partnership, is expected to close in the second quarter.
Murphy Oil said that, in a separate deal, it would buy working interests in some of Athabasca Oil Corp.'s assets in Alberta for C$475 million.
Murphy Oil will buy a 70% working interest in Kaybob Duvernay lands and 30% nonoperated working interest in Montney lands, which would expand its presence in the North American unconventional shale business. (US$1 = C$1.41)
The lenders arranging the secured first lien, last out 4.5-year term loan facility are JPMorgan Chase Bank, Morgan Stanley Bank, Bank of America and MUFG Bank, the Oklahoma City-based company said Dec. 4.
The company reported production gains, including in the Anadarko and Permian basins, higher net income, a name change and corporate domicile in the U.S.
The company has reached an ‘agreement in principle on a comprehensive restructuring with a number of its key creditors,’ CEO says.