• 9 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 11 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 13 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 14 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 16 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 17 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
This OPEC Strategy Could Boost Uranium Prices Next Year

This OPEC Strategy Could Boost Uranium Prices Next Year

Kazakhstan, the world’s largest uranium…

Draw In Crude Inventories Lifts Oil Prices

Draw In Crude Inventories Lifts Oil Prices

Oil prices reversed course on…

Energy Transfer, Sunoco Sell Stake in Bakken Pipeline Project for $2B

Pipeline construction

Energy Transfer Partners (NYSE:ETP) and Sunoco Logistics Partners (NYSE:SXL) said on Tuesday they had agreed to sell 36.75 percent in the Bakken Pipeline Project to a company owned by Enbridge Energy Partners (NYSE:EEP) and Marathon Petroleum (NYSE:MPC) for US$2 billion in cash.

The minority stake in the project—which includes the pipelines Dakota Access and Energy Transfer Crude Oil (ETCO)—is being sold to Enbridge and Marathon Petroleum’s jointly-held company MarEn Bakken Company.

Energy Transfer and Sunoco’s joint venture, Bakken Holdings, is divesting 49 percent of its 75-percent interest—that is 36.75 percent—in the Bakken Pipeline Project pipelines Dakota Access and ETCO. Phillips 66 holds the other 25 percent in each of the Dakota Access and ETCO pipelines.

Once the deal is completed, the owners of the Bakken Pipeline Project will be Energy Transfer and Sunoco with a joint 38.25-percent stake, MarEn with a 36.75-percent interest, and Phillips 66 with the remaining 25 percent.

Closing is expected to take place in the third quarter this year, subject to some closing conditions, the sellers said. At closing, Energy Transfer will get US$1.2 billion in cash while Sunoco will receive the other US$800 million. The two companies will use the money to pay down debts and finance their respective projects for growth.

The Bakken Pipeline Project, expected to be ready for service at the end of 2016, consists of 1,172 miles of crude oil pipeline, Dakota Access, from North Dakota to Patoka, Illinois, and another 700 miles of pipeline converted to crude service from Patoka to Nederland, Texas.

Estimates put the delivery capacity of Dakota Access at more than 470,000 barrels per day of crude oil from the Bakken/Three Forks area in North Dakota to market centers in the Midwest. The ETCO pipeline, via an interconnection with Dakota Access at Patoka, is planned to transport crude from the Midwest to the Sunoco Logistics and Phillips 66 storage terminals in Nederland.

After the closing of the minority stake sale, Energy Transfer will continue to oversee construction of the pipeline which, once launched, will be operated by Sunoco.

Energy Transfer, however, may face some hurdles in buying land from owners in Iowa along the Dakota Access route on to Illinois. Pipelines are seen as the next step for the Bakken if it is to become a sustainable long-term oil-producing area.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News