RCA approves transfer of 5% PTE interest

Kristen Nelson

Petroleum News

The Regulatory Commission of Alaska has approved an application filed in November 2019 by ExxonMobil Pipeline Co. and BP Transportation (Alaska) Inc. for transfer of a 5% interest in PTE Pipeline LLC from ExxonMobil Pipeline to BPTA.

The proposed 5% interest transfer is part of the transaction in which BP is exiting Alaska and selling its upstream Alaska assets to Hilcorp and its midstream assets to Harvest, Hilcorp’s midstream affiliate.

The companies told RCA that the 5% interest transfer “is intended to better align ownership interests in the PTE Pipeline with those in the Point Thomson Unit.”

The PTE Pipeline is a 12-inch inside diameter, 22-mile common carrier liquid petroleum transportation line from the central processing facility at Point Thomson to a connection to the Badami Pipeline at the Badami central processing facility, the companies said in their 2019 application. The line has a capacity of some 70,000 barrels per day, with a currently established remaining economic life of 19 years, through 2045, “which could be extended if new or additional oil production is developed in the area that it serves.”

ConocoPhillips Alaska formerly held a working interest of some 5% in the Point Thomson unit, but was not a partner in the PTE Pipeline. In May 2017 ConocoPhillips said it was relinquishing its working interest ownership in the Point Thomson unit to the other unit owners per the unit operating agreement.

ExxonMobil Pipeline holds a 68% interest in the PTE Pipeline and BPTA holds 32%. After the transfer, ExxonMobil Pipeline will hold 63% and BPTA 37%.

The companies told RCA the transfer would occur at the same time or shortly after Harvest Alaska purchased the stock of BPTA. RCA granted the transfer of 100% of stock ownership interest on Dec. 14 and on Dec. 21 RCA received notice that the transaction closed Dec. 18. “BPTA is now a wholly owned subsidiary of Harvest Alaska,” the commission said.

- KRISTEN NELSON