Shell Midstream Partners announced today that it has entered into its largest ever purchase and sale agreement to acquire ownership interest in Amberjack Pipeline Company.
Shell will take ownership of 75% of Amberjack Series A and 50% of Amberjack Series B for £900 million.
Amberjack Pipeline Company is a former joint venture between Chevron Pipe Line Company and Shell Pipeline Company.
The pipeline currently transports 300,000 barrels per day, which is expected to rise to 400,000 per day by the end of 2019.
The acquisition is expected to close on May 11, 2018.
Kevin Nichols, chief executive of Shell Mainstream Partners, said: “I’m pleased to announce our largest acquisition to date. This is a significant milestone for Shell Midstream Partners,”
“The Amberjack pipeline is strategically located to capture value in a prolific area in the Gulf of Mexico and represents another key corridor that is set to benefit from organic growth.”
“This acquisition, combined with our equity raise earlier in the year, further demonstrates our ability to deliver against our promises and positions us well for the future.”
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