ConocoPhillips to acquire stake in Keystone oil pipeline

ConocoPhillips has acquired a 50% interest in Keystone oil pipeline from TransCanada as the companies had previously outlined in a signed agreement.

By OGJ editors
HOUSTON, Jan. 29 -- ConocoPhillips has acquired a 50% interest in Keystone oil pipeline from TransCanada Corp. as the companies had previously outlined in a signed memorandum of understanding.

Jim Mulva, ConocoPhillips chairman and chief executive officer, said the Keystone pipeline will help integrate ConocoPhillips's upstream and downstream assets and ensure market access for growing Canadian oil production.

TransCanada affiliates will construct and operate the 2,148-mile Keystone pipeline, which will be capable of delivering 590,000 b/d of crude oil from Hardisty, Alta., to Wood River, Ill., Patoka, Ill., and Cushing, Okla.

Deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long-term contracts of 495,000 b/d that have an average duration of 18 years.

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