Ready
to Accept Applications from Spot Shippers
TULSA, Okla. and HOUSTON,
Texas – BridgeTex Pipeline Company, LLC, a company owned by Magellan Midstream
Partners, L.P. (NYSE: MMP) and Occidental Petroleum Corporation (NYSE: OXY),
plans to begin the commissioning of the BridgeTex Pipeline in the third quarter
of 2014. Given the significant need for crude oil transportation service
from the Permian Basin to the Houston Gulf Coast area and in order to
accommodate requests of committed and prospective spot shippers to provide
access to available transportation infrastructure as soon as it becomes
available, BridgeTex intends to begin limited commercial operations on the pipeline
as part of the initial commissioning process. The company has begun
to fill storage tankage at the origin of the system in Colorado City, Texas,
and operations to fill the pipeline will begin in the near future.
Spot shippers interested in
transporting crude oil on the BridgeTex Pipeline should contact Jon Lawrence of
Magellan at (918) 574-7709 or jon.lawrence@magellanlp.com to obtain information about
the preliminary connectivity of the pipeline as well as new shipper
setup requirements, which include the establishment of any necessary
credit support.
Once fully operational, the
BridgeTex Pipeline system will have the capacity to transport up to 300,000
barrels per day of crude oil from Colorado City to the Houston Gulf Coast area.
The project includes approximately 450
miles of newly-constructed pipeline from Colorado City to Houston and Texas
City.
About Magellan Midstream
Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded
partnership that primarily transports, stores and distributes refined petroleum
products and crude oil. The partnership owns the longest refined petroleum
products pipeline system in the country, with access to nearly 50% of the
nation’s refining capacity, and can store more than 90 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 is one of the largest U.S. oil and gas
companies, 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.
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Forward-Looking Statement Disclaimer
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.