Plains All American Pipeline, L.P. has announced that it has entered into a definitive agreement with Nexen Holdings U.S.A. Inc. to purchase entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers. Total consideration is estimated at US$ 210 million, including approximately US$ 170 million for the business and physical assets and approximately US$ 40 million for approximately 400,000 barrels of inventory and other working capital adjustments. Subject to regulatory approval, the transaction is scheduled to close by year-end 2010.
鈥淭his acquisition is consistent with our strategy to expand and strengthen our presence in long-lived, growing producing regions and is complementary to our existing Bakken area assets and activities, including our recently proposed Bakken North Pipeline Project,鈥� stated Harry N. Pefanis, President and COO of Plains All American. 鈥淲e look forward to integrating this suite of well-positioned assets, servicing an expanded customer base, and continuing to grow our Bakken business.鈥�
The assets are primarily located in northwestern North Dakota and northeastern Montana and include: a lease gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC regulated 20 mile, 8 in. pipeline that currently handles approximately 18,000 barrels per day; 8 truck terminals and various other contractual rights.