Chevron Press Release - Chevron To Sell Interest In Plantation Pipe Line Company
SAN FRANCISCO, May 3, 1999 -- Chevron announced today that it has signed a definitive agreement to sell all of its shares of Plantation Pipe Line Co. to Kinder Morgan Energy Partners, L. P. for approximately $124 million. Final closing, which is subject to approval of the Federal Trade Commission and right of first refusal from current Plantation shareholders, is expected to take place this summer. Other details of the transaction were not disclosed. Plantation is a major transporter of petroleum products from refineries in the Gulf Coast to markets throughout the Southeastern states. The sale will not affect Chevron's ability to provide products to its southeast markets.
"Chevron has had a strong affiliation with Plantation for many years," said Chevron Pipe Line Co. President Jeet Bindra. "However, given the market for assets such as Plantation, we feel that Chevron's shareholders would be best served by reinvesting in some of our many attractive oil and gas production opportunities overseas."
This sale and the pipeline company's recent agreement to sell some West Texas pipeline assets, are consistent with Chevron's overall strategic objective of accelerating international oil and gas growth.
Chevron Pipe Line Co. employs approximately 600 people and is responsible for the transportation management of crude oil, natural gas, petroleum and chemical products through nearly 9,000 miles of company-owned pipelines throughout the United States.
Updated: May 1999