... Shell Midstream Acquires Interests in Mars, Odyssey Pipelines  

Shell Midstream Acquires Interests in Mars, Odyssey Pipelines

Shell Midstream Partners LP has agreed to acquire from Shell an additional 20 percent equity interest in Mars Oil Pipeline Co. and a 49 percent equity interest in Odyssey Pipeline LLC for $350 million.

mars-olympus-mapsThe Mars and Odyssey pipelines are offshore assets that deliver crude from the Gulf of Mexico to refining facilities in southern Louisiana.

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“This acquisition further diversifies the Shell Midstream Partners portfolio with the inclusion of a well-positioned eastern Gulf of Mexico asset,” said John Hollowell, CEO of Shell Midstream in a Sept. 27 company statement. “In addition, the partnership acquired an additional interest in an existing asset with a strong track record of delivery. Both Mars and Odyssey build on our key corridor pipeline strategy in the Gulf of Mexico and are advantageously positioned to continue to capture growth of offshore volumes along our footprint of assets.”

The acquisition is expected to close on October 3, 2016.

Mars and Odyssey Highlights:

  • Mars delivers crude from the prolific Mars Basin and the Amberjack system, offering 600,000 barrels per day (bpd) of capacity into the Clovelly facility run by the Louisiana Offshore Oil Port (LOOP).
  • Odyssey has 220,000 bpd of capacity from the eastern Gulf of Mexico to the Delta Pipeline system, enabling deliveries to refineries in Louisiana and Mississippi.

The terms of the acquisition were approved by the Conflicts Committee of the board of directors of the general partner of Shell Midstream Partners, which is composed entirely of independent directors. This committee was advised by Evercore Group LLC as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters.

Shell Midstream Partners, headquartered in Houston, Texas, is a fee-based, growth-oriented midstream master limited partnership formed by Royal Dutch Shell to own, operate, develop and acquire pipelines and other midstream assets. Shell Midstream Partners’ assets consist of pipelines, crude tank storage and terminal systems that serve as key infrastructure to transport and store onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from Gulf Coast markets to major demand centers.

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