Duke acquires Arco Pipe Line
Texas Eastern Products Pipeline, an indirect wholly owned subsidiary of Duke Energy which is the general partner of
Teppco Partners, announced that it signed a definitive agreement to acquire the stock of Arco Pipe Line, a wholly
owned subsidiary of Atlantic Richfield, in a transaction valued at approximately $ 355 mm.
The companies said that the transaction, anticipated to be complete within 60 days, is contingent upon the completion of Arco's proposed merger with BP Amoco and satisfaction of any regulatory requirements. Under the agreement, TPP will acquire Arco's 50 % ownership interest in Seaway Pipeline Company.
The Seaway System includes (among other assets) a 500-mile, 30-inch diameter pipeline that carries mostly imported
crude oil from a marine terminal at Freeport, Texas, to Cushing with a capacity of 350,000 bpd. TPP stated that it
will assume Arco's role as operator of Seaway.
In addition, TPP indicated it will acquire: Arco's crude oil terminal facilities in Cushing and Midland, Texas; an undivided ownership interest in both the Rancho Pipeline and the Basin Pipeline; and the receipt and delivery pipelines 100 % owned by Arco, known as the West Texas Trunk System, which is centered around Midland.