Inter Pipeline to acquire Cold Lake pipeline interest
Published by Anna Nicklin,
Assistant Editor
World Pipelines,
Canadian Natural Resources Limited (Canadian Natural) has announced that it has reached an agreement to monetise its non-core ownership interest in the Cold Lake pipeline, to Inter Pipeline Ltd.
The transaction encompasses the monetisation of the company's entire 15% ownership interest of Cold Lake Pipeline Ltd. and its 14.7% ownership interest in the Cold Lake Limited Partnership.
Upon closing the transaction, the company will receive gross proceeds of CAN$350 million in cash and 6 417 740 common shares of Inter Pipeline at an ascribed value of CAN$177.5 million for total value of approximately CAN$527.5 million. The transaction is expected to close in 2016.
Canadian Natural expects to record an after-tax gain on disposition of approximately CAN$200 million, based on preliminary value allocations. Moreover, as previously announced, Canadian Natural has reinitiated Phase 1 of the Kirby North project. To transport Kirby North volumes, Canadian Natural has also secured firm pipeline transportation capacity with Inter Pipeline for the Kirby North production and diluent volumes, with first production targeted for 1Q20.
According to the company, the Cold Lake pipeline equity ownership was a non-core asset for Canadian Natural and monetisation of the asset brings forward significant value for the its shareholders. Upon completion of the sale, Canadian Natural will retain access to the Cold Lake pipeline system for portions of the company's crude oil volumes.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/13122016/inter-pipeline-to-acquire-cold-lake-pipeline-interest/
You might also like
The World Pipelines Podcast
Juan Caballero, Chair of the AMPP Board of Directors, talks about AMPP’s global efforts to prevent corrosion and to protect assets, offering insight into how the association listens to its members and serves the pipeline industry.
Listen for free today at www.worldpipelines.com/podcasts or subscribe and review on your favourite podcast app.
Utilising urethane cups and discs
Wilton Cardoso, Electronic Development Engineer, Pigs Unlimited, underscores the role that urethane materials play in the sucess of long-range pigging operations.
