Date: Wed, 19 Nov 1997 23:31:46 GMT Server: Apache/1.2.0 Last-Modified: Tue, 18 Nov 1997 13:39:55 GMT ETag: "1d857d-127c-34719aab" Content-Length: 4732 Accept-Ranges: bytes Connection: close Content-Type: text/html
11/18/97 | Phillips Petroleum Company |
BARTLESVILLE, Okla., November 18, 1997 --- Phillips Petroleum Company [NYSE:P] announced today that it and a subsidiary company have signed a letter of intent to purchase interests in Ultramar Diamond Shamrock Corp.s (UDS) El Paso terminal and El Paso pipeline system.
Phillips will not pursue its previously announced plans to build a pipeline from its Borger, Texas, refinery to El Paso.
Said B.Z. Parker, senior vice president of refining, marketing and transportation, "By purchasing an interest in the UDS system, Phillips will be able to serve fast-growing areas in the Southwest in a more timely manner and at a lower cost than under the original plan."
He added that the purchase also will enable Phillips to retain use of a natural gas liquids pipeline, which otherwise would have been reversed and converted to carry petroleum products.
The letter of intent provides for Phillips to purchase an initial 25 percent interest in the El Paso terminal, which is a refined products terminal. It also provides for the Phillips subsidiary to purchase an initial 25 percent interest in the El Paso pipeline system, a 408-mile, 10-inch pipeline that extends from McKee, Texas, to El Paso.
UDS plans to expand the capacity of the El Paso pipeline system from 40,000 barrels per day to 60,000 barrels per day in 1998. Once the expansion is completed, the letter of intent provides for Phillips to increase its interest in the terminal to 33 1/3 percent, and for its subsidiary to increase its interest in the pipeline system to 33 1/3 percent. UDS will continue as operator.
By early 1998, Phillips expects to begin shipping 10,000 barrels per day through the system. A 35-mile pipeline from Borger to McKee is scheduled to be completed in late 1998, which will enable Phillips to double shipments to 20,000 barrels a day.
Phillips is an integrated international petroleum company with 17,000 employees worldwide. Founded in Bartlesville in 1917, the company today has assets of $14.2 billion and annualized revenues of $16 billion.
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