Plains All American acquires Murphy's 22% stake in Butte Pipe Line

Plains All American Pipeline LP has acquired a 22% equity interest in Butte Pipe Line Co. from a subsidiary of Murphy Oil Co. The acquisition will cost $8 million, including various transaction and related expenses.

Feb. 12, 2002

By the OGJ Online Staff

HOUSTON, Feb. 12 -- Plains All American Pipeline LP has acquired a 22% equity interest in Butte Pipe Line Co. from a subsidiary of Murphy Oil Co.

The acquisition will cost $8 million, including various transaction and related expenses.

Butte Pipe Line Co. owns the 373-mile Butte pipeline from Baker, Mont., to Guernsey, Wyo. The system moves 60,000 b/d of crude but portions have "significant incremental capacity" to exceed that mark," said Plains All American. It is a mainline transmission system with segments of 6-16 in.

Equilon Pipeline Co. LLC owns the remaining 78% of Butte Pipe Line.

Harry Pefanis, Plains All American's president and chief operating officer, said, "The Butte pipeline is connected to the Poplar pipeline system, which in turn is connected to the Wascana pipeline system that is 100% owned by Plains All American."

Pefanis said Plains All American placed the Wascana pipeline to Canada in service in May 2001.

"We believe these pipeline systems will play an important role in moving increasing volumes of Canadian crude oil into markets in the US," said Pefanis.