ATP to sell Gomez pipelines

ATP Oil & Gas has executed an asset purchase and sale agreement for $78 million with an affiliate of ArcLight Capital Partners for the oil and natural gas pipelines that service the Gomez Hub in the deepwater Gulf of Mexico.

Offshore staff

HOUSTON -- ATP Oil & Gas has executed an asset purchase and sale agreement for $78 million with an affiliate of ArcLight Capital Partners for the oil and natural gas pipelines that service the Gomez Hub in the deepwater Gulf of Mexico.

The 29-mi (47-km) oil pipeline can transport up to 25,000 b/d to the Amberjack pipeline system. The 29-mi (47-km) gas pipeline can transport 100 MMcf/d of natural gas to the Discovery gas pipeline. ATP will remain the operator of Mississippi Canyon block 711 and both pipelines.

“ATP continues executing its monetization program and continues reducing debt,” says T. Paul Bulmahn, chairman and CEO of ATP. “With this transaction ATP will have reduced its $600 million Asset Sale Facility by almost $400 million in ten months. We welcome ArcLight as a strategic purchaser of one of our infrastructure assets and an investor in the deepwater Gulf of Mexico.”

09/22/2009

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