TULSA, Okla. and HOUSTON, Texas – Magellan Midstream Partners, L.P. (NYSE: MMP) and Occidental Petroleum Corporation (NYSE: OXY) announced today the launch of an open season to jointly assess customer interest to transport crude oil from Colorado City, Texas to the Houston Gulf Coast area. Interested customers must submit binding commitments by July 11, 2012.
The proposed BridgeTex Pipeline will be capable of transporting approximately 278,000 barrels per day of crude oil from Colorado City to Texas City. The project includes approximately 400 miles of newly-constructed pipeline and an expansion by Magellan of its distribution system between East Houston and Texas City. Subject to sufficient commitments from shippers and necessary permits and regulatory approvals, the BridgeTex Pipeline is expected to begin service by mid-2014.
Magellan and Occidental will form a new project company to execute the project and will share commercial responsibilities. A joint project team will oversee construction of the new pipeline, with Magellan serving as operator.
For customer inquiries about the open season, please contact Mark Daggett of Magellan at (918) 574-7022 or mark.daggett@magellanlp.com. More information about the project and the open season is available at www.magellanlp.com/uploadedfiles/BridgeTex Open Season.pdf.
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, primarily in the Permian Basin, California and Midcontinent areas, the Middle East/North Africa and Latin America regions. Oxy is the third-largest U.S. oil and gas company, based on equity market capitalization. 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 customer commitments, 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 joint venture’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 joint venture 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 the joint venture. 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.