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Koch TAPS interest goes to major owners
Kristen Nelson Petroleum News
Koch Alaska Pipeline Co. LLC, owner of 3.0845 percent of the trans-Alaska oil pipeline system, is requesting transfer of its ownership to the majority owners — BP Pipelines (Alaska) Inc., ConocoPhillips Transportation Alaska Inc., and ExxonMobil Pipeline Co.
The two minority owners in the pipeline system, Koch and Unocal Pipeline Co., elected earlier in the year to discontinue operations as pipeline carriers (see stories in July 1 and July 15 issues of Petroleum News).
Koch said at the time that it would convey its interest to the majority owners in proportion to their current ownership.
In an Oct. 22 joint filing with the Regulatory Commission of Alaska, Koch and the majority owners said ownership changes as a result of Koch’s exit would be as follows: BP would gain an additional 1.5147 percent, with its ownership growing from 46.9263 percent to 48.441 percent; ConocoPhillips would gain 0.9133 percent and its ownership would grow from 28.2953 percent to 29.2086 percent; and ExxonMobil would gain 0.6565 percent, a change from 20.3378 percent to 20.9943 percent.
Unocal, whose ownership is 1.3561 percent, is not part of this filing.
Terminal tankage ownership percentages would also change proportionately, although those percentages are not identical to pipeline assets ownership, with Exxon owning slightly more of the terminal tankage and BP and ConocoPhillips marginally less.
Strategic exit The majority owners and Koch said in the joint RCA filing that Koch wishes to exit the Alaska transportation market for “strategic reasons,” while BP, ConocoPhillips and ExxonMobil “have agreed to continue to own and operate their TAPS interests, as well as” Koch’s TAPS interest.
The companies said that in accordance with the terms of the TAPS owners’ agreement, Koch will convey its TAPS interest to the majority owners in the ratio of each current owner’s percentage ownership of the system.
The companies are requesting RCA approval on or before Dec. 14.
A statement in support of expedited consideration notes that Koch has been “contractually precluded from accepting further tenders for shipment on its TAPS interest” since July 31, and says expedited consideration “will facilitate a year-end closing date, thereby enabling all of the parties to focus on their strategic priorities in the new year.”
In July the commission granted Koch’s petition for temporary suspension of its TAPS service, pending transfer of the operating authority, and required that the application for transfer be filed by Oct. 25.
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