PAA acquires Bakken gathering and transportation assets

Plains All American Pipeline, L.P. has announced that it has entered into a definitive agreement with Nexen Holdings U.S.A. Inc. to purchase entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers. Total consideration is estimated at US$ 210 million, including approximately US$ 170 million for the business and physical assets and approximately US$ 40 million for approximately 400,000 barrels of inventory and other working capital adjustments. Subject to regulatory approval, the transaction is scheduled to close by year-end 2010.

“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,” stated Harry N. Pefanis, President and COO of Plains All American. “We look forward to integrating this suite of well-positioned assets, servicing an expanded customer base, and continuing to grow our Bakken business.”

The assets are primarily located 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 in. pipeline that currently handles approximately 18,000 barrels per day; 8 truck terminals and various other contractual rights.

Read the article online at: https://www.worldpipelines.com/business-news/16112010/paa_acquires_bakken_gathering_and_transportation_assets/