By OGJ editors
HOUSTON, Mar. 4 -- Houston-based El Paso Corp. has completed two transactions that total $1.35 billion in assets sales since Jan. 1, the company reported.
"This total represents. . .40% of the company's recently expanded asset sales goal of $3.4 billion for calendar year 2003," El Paso said.
Valero Energy Corp. exercised an option to purchase El Paso's Corpus Christi refinery and South Texas refined petroleum product pipeline system and terminal assets for $289 million. Valero's purchase option was part of a June 2001 lease agreement.
"The exercise of the purchase option was no surprise as Valero had been operating El Paso's refinery since June 2001 and had completed numerous integration projects with Valero's own Corpus Christi refinery located less than 1 mile away," noted Andrew F. Rosenfeld, analyst with Prudential Securities Inc., New York.
El Paso also closed the previously announced sale of its Florida petroleum terminals and tug and barge operations to TransMontaigne Inc., Denver, for $155 million (OGJ Online, Jan. 14, 2003). El Paso acquired these assets through its merger with Coastal Corp. in 2001.