Plains All American to acquire West Texas pipeline unit from Shell

Plains All American Pipeline LP, Houston, reached a definitive agreement to acquire certain crude oil pipeline assets from Shell Pipeline Co. LP for $315 million. Assets in the transaction include interests in the Basin pipeline system, the Rancho pipeline system, and the Permian basin gathering systems.

May 8, 2002

By OGJ editors
HOUSTON, May 8 -- Plains All American Pipeline LP, Houston, reached a definitive agreement to acquire certain crude oil pipeline assets from Shell Pipeline Co. LP for $315 million. Assets in the transaction include interests in the Basin pipeline system, the Rancho pipeline system, and the Permian basin gathering systems.

Under terms of the transaction, which is expected to close within 90 days, Plains will acquire 100% of the outstanding partnership interests in the Basin and Rancho systems as well as the Permian gathering system, its associated facilities, and other small gathering assets.

The Basin system, in particular, will provide Plains with a direct trunk line to Cushing, Okla., where the partnership owns crude oil storage capacity, said Greg Armstrong, Plains chairman and CEO. Plains will fund the transaction using existing availability under its revolving credit facility, the company said.