Williams' Field Services unit acquired the Black Marlin Pipeline System off Texas for $9.3 million, said Blue Dolphin Energy Co.
Blue Dolphin previously held 50% of the system; MCNIC Pipeline and Processing Co. held 33.33%; and WBI Holdings Inc., a subsidiary of MDU Resources Group Inc. held 16.67%.
The 75-mile natural gas and condensate gathering line with related onshore facilities serves the High Island area. The agreement also includes a recently built 3-mile lateral pipeline from High Island Block A-5 to a connection with the Black Marlin line in A-6.
Blue Dolphin acquired its interest in the line in 1999. Ivar Siem, chairman of Blue Dolphin, said the value of the asset had since increased. "This is an opportunity for us to realize good value for the asset. We can re-deploy a portion of the sale proceeds to other niche pipeline opportunities in the gulf," he said.
Blue Dolphin signed an option agreement to acquire another pipeline system and onshore liquids separation and gas dehydration facilities in the Western Gulf of Mexico off Texas. A definitive agreement must be executed by Feb. 16 or the option will lapse.