Occidental Petroleum agreed to sell its 50% interest in the BridgeTex crude oil pipeline to Plains All American Pipeline for $1.1 billion. Plains will buy Oxy’s interest in the 400-mile northern leg of the pipeline, which runs from the Permian Basin to east Houston. Magellan Midstream Partners, which owns the remaining 50% interest in the pipeline, will buy Oxy’s interest in the 40-mile southern leg from Houston to Texas City, Texas, for $75 million.
Oxy CEO Stephen Chazen said selling the pipeline is in line with his firm’s strategy of streamlining its business and reinvesting in areas where it has “depth and scale.”
The 300,000-barrel-per-day pipeline went into service in September.
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