Tuesday, July 13, 2010

BP (NYSE:BP) Selling $289 Million In Assets

Amid all the speculation of who will buy BP's (NYSE:BP) assets, Magellan Midstream Partners LP is the front runner ready to purchase $289 million worth. They have agreed to buy some of BP's storage and pipeline assets.

Magellan Midstream says they feel this will help them in the developing of its terminal in East Houston into a main distribution point. They will be getting more than 100 miles of pipeline, including a stretch of 40 miles that goes as far as the Texas City, Texas refining region.

Magellan is in the process of constructing a 2 million barrel capacity for oil storage. They will purchase a total of $7.8 million barrels of storage capacity. It will be stored at a U.S. oil hub located in Cushing, Oklahoma.

The deal is expected to close within 60 days according to Magellan, and to add to their earning immediately. The other talk pending is between BP and Apache, if agreed upon Apache would purchase $10 billion of BP's assets.

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