ConocoPhillips and TransCanada Execute Agreements for Ownership Interest in the Keystone Oil Pipeline
ConocoPhillips [NYSE:COP] and TransCanada Corporation [TSX, NYSE:TRP] today announced that ConocoPhillips acquired a 50 per cent ownership interest in the Keystone Oil Pipeline. A previously signed Memorandum of Understanding committed ConocoPhillips to ship crude oil on the pipeline and gave the right to acquire up to 50 per cent ownership interest.
“ConocoPhillips is pleased to sign this agreement with TransCanada and take an important step in providing another reliable source of transportation for Canadian crude oil to United States refineries,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips. “The Keystone Pipeline will play a significant role in integrating ConocoPhillips’ upstream and downstream assets and ensure market access for growing Canadian production.”
“The partnership between ConocoPhillips, a global integrated oil and gas producer and refiner, and TransCanada, a leading North American energy infrastructure company, reflects the strategic benefits of two energy entities working together,” said Hal Kvisle, TransCanada president and chief executive officer. “The partnership provides us with a platform for developing future crude oil pipeline opportunities.”
Affiliates of TransCanada Corporation will be responsible for constructing and operating the 3,456-kilometer (2,148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long term contracts of 495,000 barrels per day with an average duration of 18 years.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, Texas, the company had approximately 32,500 employees, $173 billion of assets, and $180 billion of annualized revenues as of September 30, 2007. For more information, go to www.conocophillips.com.
TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometers (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. For more information, go to www.transcanada.com.
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