Canadian Occidental Petroleum Ltd. subsidiary CXY Energy Marketing has agreed to buy Northridge Petroleum Marketing Ltd. for $40 million. Seller TransCanada PipeLines Ltd. said the transaction is part of its previously announced $3 billion divestiture program.
NPML markets and trades Canadian crude oil and refined products. NPML was one of the Northridge group of companies acquired by TransCanada in 1994. The sale also includes TransCanada Energy Marketing USA Inc.'s crude oil marketing operations in Denver.
Pending necessary consents and approvals, the sale is expected to close by the end of the month. The price includes working capital.
The sale also will keep TransCanada on track to meet its $3 billion divestiture target, said Doug Baldwin, TransCanada's president and CEO. It has already amassed $1 billion through sales of other assets, says Baldwin.
In May, TransCanada sold interests in natural gas transmission networks in Argentina, Brazil, and Chile for $440 million to France's TotalFinaElf SA (OGJ Online, May 31, 2000). It also recently sold its 17.5% interest stake in Colombia's Oleducto Central SA and 50% interest in CIT Colombiana SA to Calgary-based Enbridge Inc. for $117 million (OGJ Online, May 4, 2000).