BP Products North America announced that it has agreed to sell a package of 33 refined products terminals and 992 miles of pipelines across 13 states to Buckeye Partners L.P. Buckeye has also agreed to buy BP’s 50% share in Inland Corporation, the pipeline joint venture in Ohio.
Under the terms of the agreement Buckeye has agreed to pay BP US$225 million in cash, subject to closing adjustments. Subject to regulatory approvals and pre-emption rights of co-owners, the transaction is expected to complete during the second quarter of 2011.
The planned divestment was originally announced in October 2009 as a move to simplify BP’s downstream portfolio, increasing efficiency and decreasing capital employed while maintaining BP’s marketing footprint in the US. BP said that it expects to continue to market its fuel through the terminals and will continue with the customer relationships currently in place.
