Anadarko Exercises Option to Acquire 20% Stake in Pipeline
March 18 2015 - 10:16AM
Dow Jones News
By Tess Stynes
Anadarko Petroleum Corp. (APC) exercised its option to purchase
a 20% equity interest in a 550-mile pipeline planned by Magellan
Midstream Partners LP (MMP) and Plains All-American Pipeline LP
(PAA).
The Saddlehorn pipeline is aimed to transport crude out of the
DJ Basin and potentially the broader Rocky Mountain region, and
into storage facilities in Cushing, Okla. Magellan and Plains All
American will each have 40% interests in the pipeline, and they own
the Oklahoma facilities.
The pipeline project is estimated to cost between $800 million
and $850 million. Pending necessary regulatory approvals, the
pipeline is expected to go online in mid-2016.
Further financial details weren't provided.
U.S. oil production has skyrocketed in recent years amid
advances in drilling methods that have unlocked crude trapped in
shale rock formations. The growth in output has spurred demand for
more pipelines to bring crude oil to markets.
Write to Tess Stynes at tess.stynes@wsj.com
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