Chevron Press Release - Chevron To Sell Some West Texas Pipeline Assets
HOUSTON, April 19, 1999 -- Chevron today announced it has signed a definitive agreement to sell its West Texas Gathering Pipeline System to Plains All American Pipeline, L.P., for approximately $40 million. The assets include approximately 400 miles of pipeline, gathering lines, pump stations, and trunk lines used in transporting about 98,000 barrels per day (bpd) of crude oil produced throughout the Permian Basin to Midland, Texas.
Chevron will continue transporting crude through the pipeline under a contractual arrangement. About 20 employees will be affected by the transaction, which is expected to close in the third quarter 1999.
"This sale is in line with Chevron's overall objective to focus on our primary growth areas and reduce operating expenses," said Jeet Bindra, president of Chevron Pipe Line Co.
Chevron is continuing to concentrate on near-term cost cutting in order to continue strategic investment in international growth projects.
Chevron Pipe Line Co. employs about 600 people and is responsible for the transportation management of crude oil, natural gas, petroleum and chemical products through nearly 9000 miles of company-owned pipelines in the United States.
Plains All American Pipeline, L.P., based in Houston, is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing activities, primarily in California, Texas, Oklahoma, Louisiana and the Gulf of Mexico. Plains All American Inc., the General Partner of Plains All American Pipeline, L.P., is a wholly owned subsidiary of Plains Resources Inc.
Updated: April 1999