•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    ONEOK Partners sells partial interest in Overland Pass Pipeline to Williams Partners

    $424 million sale leaves each entity with 50% ownership

    TULSA, Okla. – Master limited partnership ONEOK Partners LP (NYSE: OKS) has completed a transaction to sell 49% of its ownership of Overland Pass Pipeline Co. LLC to Williams Partners LP (NYSE: WPZ) for $424 million at closing.

    ONEOK Partners will use the proceeds to repay short-term debt and to fund capital projects.

    ONEOK Partners and Williams Partners each now owns 50% of Overland Pass Pipeline Co. LLC. Previously, ONEOK Partners owned 99% of the joint venture and Williams Partners owned the remaining 1%.

    In July, ONEOK Partners announced it had received notification from Williams Partners of its election to exercise its option to increase its ownership of Overland Pass Pipeline. The company also announced its plans to spend $35 million to $40 million for related capacity expansions for its interest in the Overland Pass Pipeline to transport the additional unfractionated NGL volumes from the new Bakken Pipeline.

    As long as Williams Partners owns at least 50% of Overland Pass Pipeline Co., Williams Partners will have the option to become the operator by providing ONEOK Partners at least 30 days notice.

    This transaction is not expected to affect ONEOK Partners' 2010 net income guidance of $450 million to $490 million. Earnings from Overland Pass Pipeline Co. will be accounted for prospectively as equity earnings from investments, beginning in September 2010.

    Overland Pass Pipeline
    The joint-venture company was established in May 2006 to build the Overland Pass Pipeline, a 760-mile natural gas liquids (NGL) pipeline from Opal, Wyo., to the Mid-Continent natural gas liquids market center in Conway, Kan., one of the nation's primary NGL distribution and storage hubs.

    The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities.

    Overland Pass Pipeline Company LLC also includes the Piceance Lateral Pipeline, a 150-mile pipeline connecting the Piceance Basin to the Overland Pass Pipeline, and the D-J Basin Lateral Pipeline, a 125-mile pipeline connecting the Denver-Julesberg Basin with the Overland Pass Pipeline. ONEOK Partners, through its subsidiaries, managed the construction projects and is the operator of the pipelines. 

    Source:  ONEOK Partners

    Related Articles

    Kinder Morgan to Expand Edmonton Terminal

    08/08/2014 Kinder Morgan reports that its joint venture has entered into additional firm take or pay agreements with oil majors sufficient to allow a planned expansion project to move forward by adding increm...

    Regency and AE-MIDCO Enter Into Joint Venture

    08/07/2014 Regency Energy Partners LP and American Energy – Midstream LLC (AE-MidCo) have entered into a joint venture agreement for the construction and operation of Regency’s previously announced Utica Ohio...

    Eni inks PSCs for two onshore exploration blocks in Myanmar

    08/01/2014 Eni, following its participation in the competitive International Bid Round launched by the Republic of the Union of Myanmar, has signed two production sharing contracts for the RSF-5 and PSC-K ons...

    TransCoastal to drill 10 wells in Core Area

    08/01/2014 TransCoastal Corp., an independent energy development company, has entered into a joint venture agreement with Core Resource Management Inc., to drill up to 10 wells on TransCoastal's Pampa, Texas,...

    Enterprise, Genesis complete oil pipeline in Gulf of Mexico

    07/31/2014 Enterprise Products Partners LP and Genesis Energy LP report that their jointly owned crude oil gathering pipeline serving the Lucius production area in southern Keathley Canyon of the Gulf of Mexi...

    More Oil & Gas Financial Articles

    Kinder Morgan to Expand Edmonton Terminal

    Fri, Aug 8, 2014

    Kinder Morgan reports that its joint venture has entered into additional firm take or pay agreements with oil majors sufficient to allow a planned expansion project to move forward by adding incremental capacity of 110,000 barrels per day at the Edmonton Rail Terminal.

    Regency and AE-MIDCO Enter Into Joint Venture

    Thu, Aug 7, 2014

    Regency Energy Partners LP and American Energy – Midstream LLC (AE-MidCo) have entered into a joint venture agreement for the construction and operation of Regency’s previously announced Utica Ohio River Project.

    Eni inks PSCs for two onshore exploration blocks in Myanmar

    Fri, Aug 1, 2014

    Eni, following its participation in the competitive International Bid Round launched by the Republic of the Union of Myanmar, has signed two production sharing contracts for the RSF-5 and PSC-K onshore blocks in Myanmar.

    TransCoastal to drill 10 wells in Core Area

    Fri, Aug 1, 2014

    TransCoastal Corp., an independent energy development company, has entered into a joint venture agreement with Core Resource Management Inc., to drill up to 10 wells on TransCoastal's Pampa, Texas, acreage.  

    Enterprise, Genesis complete oil pipeline in Gulf of Mexico

    Thu, Jul 31, 2014

    Enterprise Products Partners LP and Genesis Energy LP report that their jointly owned crude oil gathering pipeline serving the Lucius production area in southern Keathley Canyon of the Gulf of Mexico is now mechanically complete and it began earning revenues on July 1.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ