Shell Midstream takes over Shell’s interests

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The American Shell Midstream Partners takes over the shares of the oil and gas giant Shell listed in Amsterdam in various pipeline companies. It is about the interest of almost 26 percent in Explorer Pipeline Company and the share of more than 10 percent in Colonial Pipeline Company. The deals have a total value of 800 million dollars.

Shell Midstream finances the deal through credits and new shares. The acquisition is expected to close in the second quarter of this year. The usual approvals are still required for the deal.

With almost 3000 kilometers of pipelines, Explorer is one of the larger transporters of gasoline, diesel, fuel oil and jet fuel. The company has a capacity of 660,000 barrels per day.

Colonial is the largest pipeline for refined products in the United States. The pipeline starts in Houston, Texas and runs to the port of New York. All major urban areas along the route are served.

As a result of the takeover of the interests, Shell Midstream receives almost 39 percent from Explorer and more than 16 percent from Colonial. Shell Midstream is Shell’s American branched-off branch in 2014.

It was also announced that Equinor is taking over Shell’s stake of 22.45 percent in the Ceasar Tonga oil field in the Gulf of Mexico. The Norwegians pay 965 million dollars for this. All in all, this means that an earlier agreement between Shell and Delek Group regarding the interest has been canceled. The start date of the deal is January 1, 2019.

About the author

Lesley Woutersen

Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by [email protected]

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