ArcLight, through its wholly-owned affiliate Offshore Infrastructure Partners, LLC ("OIP"), has closed on its purchase from ATP Oil & Gas Corporation of the oil and natural gas pipelines that service ATP's Gomez Hub located at Mississippi Canyon Block 711 in the deepwater Gulf of Mexico for $78 million.
ArcLight established OIP to invest in critical pipeline, platform and production infrastructure assets in the Gulf of Mexico. "We are very pleased to have closed this important transaction with ATP to monetize their pipeline assets while providing ongoing gas gathering and oil export services from the Gomez Hub," said Robb Turner, senior partner at ArcLight. "OIP is actively evaluating further investments that bring needed capital into the Gulf," added Mr. Turner.
The oil pipeline is 28 miles long and has the capacity to transport up to 25,000 barrels of oil per day to the Amberjack pipeline system. The gas pipeline, also 28 miles long, has the capacity to transport 100 MMcf per day of natural gas to the Discovery Gas Pipeline. ATP will remain the operator of Mississippi Canyon Block 711 and will remain the operator of both pipelines. Jefferies & Company, Inc. served as exclusive financial advisor to ArcLight in the ATP transaction.
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