Houston Pipeline and Storage Company Gets Investment from Former Moda and Lotus Investors

Houston-based Candor Midstream LLC, a pipeline and storage company, announced on Tuesday that it received a $200 million equity commitment from San Antonio-based investment firm EnCap Flatrock Midstream.

Candor Midstream’s President and CEO was a former executive with Crestwood Midstream Partners LP and Enbridge. The newly invested money could be used to acquire existing assets or to start new projects.

EnCap Flatrock Midstream also funded two Houston energy firms that spent $2.6 billion on assets owned by Occidental Petroleum, also known as Oxy. Oxy sold its crude oil export Ingleside Energy Center Terminal to Moda Midstream and its Centurion pipeline system from West Texas to Cushing, Oklahoma to Lotus Midstream. Both Moda and Lotus are backed by EnCap FlatRock Midstream.

Occidental was expanding its Ingleside export terminal to handle greater volumes, resulting in the sale. Oxy has been focusing on oil and gas production in West Texas’ Permian Basin oil field, and has been selling other assets.

Source: 
Houston Chronicle

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

Occidental Petroleum Looking To Potentially Sell Pipeline Assets

Occidental Petroleum Corp (OXY.N) is looking to free up capital to invest in exploration and production by exploring a sale of its pipeline assets, a source familiar with the matter said on Tuesday. The source asked to remain anonymous because of the matter being confidential.

Occidental is looking to fetch upwards of $5 billion in the latest example of an oil company balking at the capital expenditure required to maintain U.S. pipelines. With bottlenecks plaguing the U.S. industry, the construction of new networks is required.

The anonymous source also added that Occidental is working with investment bankers on an auction for the pipeline assets that will include major U.S. crude pipeline, a stake in a gas pipeline in the Middle East, a crude export terminal in Texas, and the Centurion Pipeline.

In addition to those assets, Occidental would include its 50 percent stake in Ingleside Energy Center, a crude oil storage and export terminal in Corpus Christi, Texas which was almost sold a year ago. The sale process was never completed.

Source:
Reuters
 

Cleanup Underway After Centurion Pipeline Oil Spill in Oklahoma

Cleanup is underway in Yukon, Oklahoma after a pipeline burst on Sunday, spilling an estimated 1,000 barrels of crude oil into a private pond.

The spill occurred from a pipe owned by Centurion Pipeline, a subsidiary of Occidental Petroleum Corp. The company said the release has been contained.

The EPA told local reporters that hundreds of dead fish are being removed from the private pond as cleanup continues.

Centurion sent local reporters an updated statement Monday saying the company has made significant improvements in removing oil from the pond and that it will conduct an investigation to determine the cause of the incident.

Source:
News 9