By OGJ editors
HOUSTON, Mar. 10 -- Plains All American LP, Houston, has acquired a West Texas crude oil gathering system in the Permian basin in West Texas from Navajo Refining Co. LP for $24 million. The system—which comprises 367 miles of gathering lines that transport 24,000 b/day of oil, most of which is sour crude—complements Plains's existing West Texas assets, said Greg L. Armstrong, Plains chairman and CEO.
During the first quarter, Plains acquired a 347 mile crude oil pipeline that originates at Sabine Station in East Texas and terminates near Cushing, Okla. The transaction also included storage capacity of 700,000 bbl of oil. Plains said it would upgrade certain sections of this pipeline and construct a 12 mile extension of the system to connect it to its Cushing terminal.
Plains said it plans to spend about $15 million on the assets acquired in the two transactions, half being spent this yearand the other half in 2004.
