Union Texas Petroleum Holdings Inc., Houston, is shedding more assets.
Western Gas Resources Inc., Denver, agreed to buy the U.S. gas processing assets of Union Texas Products Corp., a unit of Union Texas.
In addition, Union Texas is seeking a buyer for its U.S. petrochemical assets, which include a 42% interest in an ethylene plant at Geismar, La.
Western Gas agreed to pay about $135 million for the gas processing assets, subject to adjustments. The transaction is expected to close in November.
The purchase is to cover 12 processing plants in Texas, Oklahoma, and Louisiana with about 5,260 miles of related gathering systems.
Seven of the plants are supplied by the gathering systems. The rest are straddle plants supplied with gas gathered by other companies.
The plants produce about 102 MMcfd of residue gas. During first half 1991, Union Texas'gas liquids production averaged about 975,000 gal/day.
The acquisition will boost Western's production to about 1,825 million gal/day of NGL and at least 395 MMcfd of residue gas.
Western expects to add about 50 employees at its Denver office during the next year.
Union Texas last week reported completion of a $260 million sale of its U.S. onshore Lower 48 oil and gas business to Burlington Resources Inc. subsidiary Meridian Oil Inc. effective last Apr. 1. After adjustments, net cash proceeds from the sale at closing were $246 million.
The company last April closed the sale of its U.S. offshore oil and gas holdings for about $475 million.
It still holds non-U.S. assets, including those in the U.K. North Sea and Indonesia.
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