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TAPS consolidation efforts continue
Efforts remain under way to potentially whittle the number of owners in the trans-Alaska oil pipeline system from five companies to three.
The latest development comes from Unocal Pipeline Co., which told state pipeline regulators in an Oct. 25 filing that negotiations regarding the transfer of its TAPS ownership interest “are ongoing, but an agreement regarding the terms of a transfer has not yet been reached.”
Unocal, part of Chevron, holds a holds 1.3561 percent stake in the pipeline system. It’s the smallest share of any owner.
In June, Unocal said it would withdraw from the pipeline ownership group “because its interest in TAPS no longer meets the company’s core strategic needs.”
Service suspended The Regulatory Commission of Alaska, which regulates the pipeline, on July 27 granted Unocal permission to temporarily suspend service on its share of TAPS.
The agency ordered the company to file, by Oct. 25, either an application to transfer its operating authority in TAPS or an explanation as to why such an application could not be made by the deadline.
Unocal, in its Oct. 25 filing, told the RCA it was “not in a position to file an application to transfer its operating authority at this time,” citing the continuing negotiations.
Unocal is believed to be negotiating a sale and transfer of its operating authority to the three major TAPS owners: BP, with a 46.9263 percent interest; ConocoPhillips, 28.2953 percent; and ExxonMobil, 20.3378 percent.
Koch seeks exit One other company owns a small share in TAPS. That’s Koch Alaska Pipeline Company LLC, a unit of Koch Industries of Wichita, Kan., with 3.0845 percent.
Like Unocal, Koch in June said it too wanted to withdraw from the TAPS ownership group.
On Oct. 22, Koch, BP, ConocoPhillips and ExxonMobil filed a joint application with the RCA to transfer operating authority on Koch’s interest to the other three companies. The application doesn’t disclose terms of the apparent pending sale.
The RCA has published a public notice on the joint application, inviting comments by Nov. 9.
Unocal and Koch elected to bow out of the ownership group rather than sign up for another five-year commitment under the contractual agreement between the TAPS owners.
—Wesley Loy
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