Magellan Midstream and Occidental Petroleum Corporation Proceed with BridgeTex
Pipeline to Deliver Crude Oil from the Permian Basin to the Houston Gulf Coast
TULSA, Okla. and LOS ANGELES, Nov. 19, 2012
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:
oapproximately 400 miles of 20-inch pipeline from Colorado City to
Magellan's terminal in East Houston;
oapproximately 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
onearly 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
A joint project team will oversee the BridgeTex Pipeline project, with
Magellan serving as the construction manager and operator of the BridgeTex
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
Magellan: Paula Farrell, Investor Relations (918) 574-7650,
Bruce Heine, Media Relations (918) 574-7010,
Occidental: Chris Stavros, Investor Relations (212) 603-8184,
Melissa Schoeb, Media Relations (310) 443-6504,
SOURCE Magellan Midstream Partners, L.P.; Occidental Petroleum Corporation
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