Oxy to Sell Ingleside and Crude Oil Infrastructure to Moda and Lotus Midstream

Moda Midstream, LLC announced on Wednesday that it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure form Occidental Petroleum Corporation. The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions.

Strategically located in Ingleside, Texas, IEC resides near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico.

Oxy is also selling the Centurion pipeline system to Lotus Midstream. The pipeline extends from the Permian to an oil storage and transportation hub in Cushing, Oklahoma.

The combined $2.6 billion transaction are part of an effort for Oxy to focus on its growing production in the Permian. Oxy is easily one of the largest producer’s in the Permian.

Chief Executive Vicki Hollub emphasized the company’s focus on the Permian

“The Permian is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”

The transactions by Moda and Lotus are the largest in their companies’ history.

Source:
Houston Chronicle
World Pipelines