Plains All American Pipeline LP, Houston, (NYSE: PAA) plans to buy entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers Nexen Holdings U.S.A. Inc., a division of Nexen Inc., Calgary, (NYSE: NXY) for $210 million.
The deal includes approximately $170 million for the business and physical assets and approximately $40 million for approximately 400,000 barrels of inventory and other working capital adjustments.
The assets are primarily in northwestern North Dakota and northeastern Montana and include a lease-gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC-regulated 20-mile, 8-inch pipeline that currently handles approximately 18,000 barrels per day; eight truck terminals and various other contractual rights.
Plains All American president and chief operating officer Harry Pefanis says, “This acquisition is consistent with our strategy to expand and strengthen our presence in long-lived, growing producing regions and is complementary to our existing Bakken area assets and activities, including our recently proposed Bakken North Pipeline project. We look forward to integrating this suite of well-positioned assets, servicing an expanded customer base and continuing to grow our Bakken business.”
The deal is expected to close by year-end 2010.
Recommended Reading
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.