Shell Midstream Partners is taking part in its largest acquisition to date following a purchase and sale agreement to acquire Shell’s ownership interest in Amberjack Pipeline Company.
The interest comprises 75% of Amberjack Series A and 50% of Amberjack Series B for $1.22 billion.
The benefits of the company for Shell Midstream comprise sustained growth, connectivity and market optionality.
The acquisition closed on May 11.
Kevin Nichols, CEO, says: This is a significant milestone for Shell Midstream Partners. The Amberjack pipeline is strategically located to capture value in a prolific area in the Gulf of Mexico and represents another key corridor that is set to benefit from organic growth.
‘This acquisition, combined with our equity raise earlier in the year, further demonstrates our ability to deliver against our promises and positions us well for the future.’