By the OGJ Online Staff
HOUSTON, Nov. 1 -- Alberta Energy Co. Ltd., Calgary, said Thursday it will sell its 13.75% interest in Alberta Oil Sands Pipeline Ltd. (AOSPL) to Pembina Pipeline Corp. for $225 million (Can.).
AEC said it carried a net book value of $150 million for AOSPL. The transaction is due to close by yearend.
AOSPL is the exclusive transporter of synthetic oil production from Syncrude Canada Ltd.'s plant, near Fort McMurray, Alta., to Edmonton. The 430-km line moves 220,000 b/d under agreements with the Syncrude participants.
Hector McFadyen, president of AEC's midstream operations, noted that the transaction follows the recent sale of AEC's Jonah Gas Gathering System in Wyoming.
"The realization by AEC from these transactions will total close to $800 million and underscores the value of AEC's midstream assets. These sales will have only a modest impact on the future income from AEC's remaining core midstream assets."
As of Sept. 30, the company's midstream assets had a book value of $2.9 billion and were forecast to generate $300 million in operating cash flow in 2001.
The company said the AOSPL sale strengthens its financial position. On a pro forma basis on Sept 30, AEC's upstream debt to capitalization was 34% and upstream debt to cash flow, on a trailing 12-month basis, was 1.1 times. Its midstream debt to capitalization remained unchanged at 60%.
