Magellan Midstream and Occidental Petroleum Corporation Proceed
with BridgeTex Pipeline to Deliver Crude Oil from the Permian Basin
to the Houston Gulf Coast Area
TULSA, Okla. and LOS ANGELES, Nov. 19,
2012 /PRNewswire/ -- Magellan Midstream Partners, L.P.
(NYSE: MMP) ("Magellan") and Occidental Petroleum Corporation
(NYSE: OXY) announced today that they are proceeding with the
construction of the previously announced BridgeTex Pipeline to
transport Permian Basin crude oil from Colorado City, Texas to the Houston Gulf Coast
area.
The BridgeTex Pipeline is supported by long-term transportation
commitments received during its recent successful open season and
has received a favorable order from the Federal Energy Regulatory
Commission approving the tariff structure for the pipeline.
The BridgeTex Pipeline will be capable of transporting up to
300,000 barrels per day of crude oil, with access to Houston Ship Channel refineries, Texas City refineries and other refineries
throughout the Gulf Coast via third-party pipelines. The BridgeTex
Pipeline project includes construction of the following energy
infrastructure:
- approximately 400 miles of 20-inch pipeline from Colorado City to Magellan's terminal in
East Houston;
- approximately 1.2 million barrels of crude oil storage at
Colorado City and 1.4 million
barrels of crude oil storage at East
Houston to facilitate pipeline movements; and
- nearly 50 miles of 24-inch pipeline between East Houston and Texas City.
The BridgeTex Pipeline is expected to begin service by mid-2014,
subject to necessary permitting.
A joint project team will oversee the BridgeTex Pipeline
project, with Magellan serving as the construction manager and
operator of the BridgeTex Pipeline.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded
partnership that primarily transports, stores and distributes
petroleum products. The partnership owns the longest refined
petroleum products pipeline system in the country, with access to
more than 40% of the nation's refining capacity, and can store 80
million barrels of petroleum products such as gasoline, diesel fuel
and crude oil. More information is available at
www.magellanlp.com.
About Occidental Petroleum Corporation
Occidental Petroleum Corporation (NYSE: OXY) is an international
oil and gas exploration and production company with operations in
the United States, Middle East/North
Africa and Latin America
regions. Oxy's wholly owned subsidiary OxyChem manufactures and
markets chlor-alkali products and vinyls. Oxy is committed to
safeguarding the environment, protecting the safety and health of
employees and neighboring communities and upholding high standards
of social responsibility in all of the company's worldwide
operations. More information is available at www.oxy.com.
Portions of this document constitute forward-looking
statements as defined by federal law. Although management of
Magellan Midstream Partners, L.P. and Occidental Petroleum
Corporation believe any such statements are based on reasonable
assumptions, there is no assurance that actual outcomes will not be
materially different. Among the key risk factors associated with
the project that may have a direct impact on the companies' results
of operations and financial condition are: (1) their ability to
obtain all required permits and regulatory approvals on time; (2)
their ability to complete construction of the project on time and
at expected costs; (3) price fluctuations and overall demand for
crude oil; (4) changes in the BridgeTex Pipeline's tariff rates or
other terms imposed by state or federal regulatory agencies; (5)
the occurrence of an operational hazard or unforeseen interruption
for which the companies or BridgeTex Pipeline are not adequately
insured; (6) disruption in the debt and equity markets that
negatively impacts the companies' abilities to finance capital
spending and (7) failure of customers to meet or continue
contractual obligations to the companies or to the BridgeTex
Pipeline company. Additional information about issues that could
lead to material changes in performance is contained in the
Securities and Exchange Commission filings for both companies. The
companies undertake no obligation to revise these forward-looking
statements to reflect events or circumstances occurring after
today's date.
Contacts:
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Magellan:
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Paula
Farrell, Investor Relations (918) 574-7650,
paula.farrell@magellanlp.com
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Bruce
Heine, Media Relations (918) 574-7010, bruce.heine@magellanlp.com
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Occidental:
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Chris
Stavros, Investor Relations (212) 603-8184,
chris_stavros@oxy.com
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Melissa
Schoeb, Media Relations (310) 443-6504,
melissa_schoeb@oxy.com
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SOURCE Magellan Midstream Partners, L.P.; Occidental Petroleum
Corporation