Here are three of the top five:
KMI to build more crude oil storage.
Houston, TX-based oil and gas pipeline company Kinder Morgan Inc. announced a equally owned joint venture with Canada’s Keyera Corp. to build a new crude oil storage terminal in Edmonton, Alberta.
... 4.8 million barrels of crude oil storage at a new facility called the Base Line Terminal ... commissioning is expected to begin in the second half of 2017.
Separately, KMI will invest up to an additional CAD$69 million outside the joint venture in connecting pipelines and related infrastructure for a total project investment of approximately CAD$411 million.BP might have to pull out of the Gulf of Mexico.
Oil giant BP plc BP if of the opinion that an oil spill fine higher than $2.3 billion would drain its U.S. unit of cash and threaten its future operations in the Gulf of Mexico (GoM).
The company faces up to $13.7 billion in fines for pollution caused by the Apr 2010 disaster. Under the US Clean Water Act, an additional fine of about $18 billion could be slapped on BP if it is found guilty of gross negligence for the Deepwater Horizon blowout that killed 11 workers and spilled millions of barrels of oil in the GoM. It took nearly three months for BP to cap the well, which was finally sealed in September. BP had continuously maintained that a strong ruling over America’s biggest offshore oil accident could be evaded.[Does the Gulf even matter any more? The Bakken has more reserves than the Gulf of Mexico according to the EIA.]
Williams to increase equity in EV Energy.
WPZ announced its decision to acquire an additional 21% equity interest in UEO from a subsidiary of EV Energy Partners, L.P. EVEP. The partnership already holds a 49% equity interest in Utica East Ohio Midstream LLC through its subsidiary – Utica Gas Services.
The transaction is valued at about $575 million. Post acquisition, Williams Partners will own an equity interest of 70% in UEO.Add one more. San Antonio BizJournal is reporting:
Tesoro Logistics LP is buying up QEP Midstream Partners LP in all unit transaction, the companies said late Monday.
Under the terms of the agreement, San Antonio-based Tesoro Logistics (NYSE: TLLP) will exchange 0.3088 common unit for every unit owned in QEP (NYSE: QEPM). Since both companies are structured as master limited partnerships, ownership is expressed in units not shares.
QEP’s units are valued at $17.09 per common unit based on Tesoro Logistics’ closing price of $55.34. This represents an 8.5 percent premium to the company’s original proposal on Dec. 2, 2014.Disclaimer: this is not an investment site.
A thought on your question on if the Gulf matters anymore. I used to work for Marathon, and one of the Land Managers informed me that a single well in the GOM would replace a three-year drilling program in the Bakken. It's significant if you hit but it takes a long time to ramp up. Chevron's Jack/St. Malo, for instance, was discovered about a year after I graduated, and now 12 years later it's finally producing.
ReplyDeleteThank you. That's a great data point. Much appreciated. Interesting about the Jack/St Malo -- I actually remember posting a note about that ... and really graphically demonstrates the difference between the Gulf and the Bakken.
DeleteAnd then BP's experience ...