Shell Midstream Partners Buys Stakes In Three Gulf Of Mexico Pipelines From BP

(RTTNews) - Shell Midstream Partners L.P. (SHLX) said that it has acquired 10% interest in Proteus Oil Pipeline Company, LLC, 10% interest in Endymion Oil Pipeline Company, LLC, and a 1% interest in Cleopatra Gas Gathering Company, LLC from BP.

The acquisition price reflects an approximate 7.7 times multiple of Shell's forecasted annual average Adjusted EBITDA attributable to the purchased interests over 2017 and 2018. The acquisition is expected to be immediately accretive to unitholders.

Proteus is a 71-mile crude oil pipeline with a 425,000 bpd capacity. The pipeline provides access to the Mississippi Canyon area of the Gulf of Mexico from the Thunder Horse and Thunder Hawk platform to the Proteus SP 89E Platform. Noble Energy's Big Bend and Dantzler fields are tied back to the Thunder Hawk platform.

Endymion is an 89-mile crude oil pipeline with a 425,000 bpd capacity. The pipeline provides access to the Mississippi Canyon area of the Gulf of Mexico. It is connected to LOOP Clovelly storage with access to multiple markets.

Cleopatra is a 115-mile gas gathering pipeline in Southern Green Canyon, with access to Atwater Valley, Walker Ridge, and Lund areas in the Gulf of Mexico. Cleopatra is currently connected to the Holstein, Atlantis, Neptune, Shenzi and Mad Dog platforms. The system will transport new volumes from the Mad Dog 2 field once it comes online.