Valero Energy sells interest in Cameron Highway Oil Pipeline Co.

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, Valero’s share of annualised distributions from the partnership has ranged from US$ 27 million to US$ 33 million.

“This sale is part of our ongoing strategy of divesting non-core assets,” Valero Chairman and CEO Bill Klesse said. “At the end of a competitive process, we received an attractive price that unlocks significant value for our shareholders.”

The sale is expected to close in the fourth quarter, subject to regulatory approvals. The proceeds will be used for general corporate purposes.

Read the article online at: https://www.worldpipelines.com/business-news/27102010/valero_energy_sells_interest_in_cameron_highway_oil_pipeline_co-/