Shell Midstream Partners has acquired a 10% interest in Proteus Oil Pipeline Company, a 10% interest in Endymion Oil Pipeline Company and 1% interest in Cleopatra Gas Gathering Company, all from BP.
The acquisition was approved by the board of directors of the general partner of Shell Midstream Partners.
Go deeper with GlobalData
Shell Midstream Partners CEO John Hollowell said: “This acquisition builds on our corridor pipeline strategy in the Gulf of Mexico. Our sponsor, Shell Pipeline Company is currently building the Mattox pipeline to serve the recently sanctioned Appomattox platform.
“Proteus and Endymion will connect the Mattox pipeline to onshore markets, creating a new corridor line, which will transport all of Appomattox’s volumes once it comes online toward the end of the decade.”
Hollowell further added: “Proteus also connects to the Thunder Horse platform, which is a key development field for BP and ExxonMobil. In addition to Thunder Horse, Proteus is also currently connected to the Noble Energy Inc operated Thunder Hawk platform.
“This acquisition will deepen our footprint in the Eastern Gulf of Mexico, an active area with a number of discoveries currently under appraisal.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe transaction value for this acquisition was nearly 7.7 times of Shell’s predicted annual average adjusted EBITDA attributable to the purchased interests over 2017 and 2018.
It funded the acquisition by borrowing under Shell Midstream Partners’ revolving credit facilities, which is expected to get accreted to unit holders.
The acquired Proteus is a 71-mile crude oil pipeline with the capacity of 425,000bpd. It connects Mississippi Canyon area of the Gulf of Mexico with the Thunder Horse and Thunder Hawk platform to the Proteus SP 89E Platform.
The 89-mile long Endymion also has the same capacity that is connected to LOOP Clovelly storage with access to multiple markets.
Cleopatra is the largest among the three with access to Atwater Valley, Walker Ridge and Lund areas in the Gulf of Mexico. This 115-mile pipeline is connected to Holstein, Atlantis, Neptune, Shenzi and Mad Dog platforms.
Headquartered in Houston, Shell Midstream Partners was established by Royal Dutch Shell to own, develop and operate midstream assets.
