Closing is expected to occur within the 30 to 45 days. The purchase price was not disclosed. The company stated that all of the current general partner owners will continue to be owners following the closing of the transactions. The sale of certain of the interests is subject to receipt of approvals by lenders to one of the owners.
To facilitate the certainty of the transaction, other owners have agreed to sell additional interests such that Occidental Petroleum (Oxy) will acquire an aggregate 10% equity interest, even if such lender approvals are not obtained. In either event, the current control positions with respect to the general partner will not be affected as a result of this transaction.
Greg Armstrong, chairman and CEO of Plains All American Pipeline (PAA), said: Oxy is a well respected, large and financially strong energy industry participant and we believe their investment in PAA’s general partner is an attractive transaction for PAA. Over the next several years, we look forward to exploring potential mutually beneficial opportunities with regard to the respective midstream activities of PAA and Oxy.
