Willbros Group Inc. (NYSE: WG) is further streamlining its oil and gas operations through the sale of certain U.S. mainline pipeline assets, the Houston-based company said Jan. 12.
Willbros reached an agreement to sell the assets, which include primarily cross-country pipeline construction equipment, to WB Pipeline LLC, an affiliate of New York-based Meridien Energy LLC, for an undisclosed amount, according to a Willbros press release. The company also said valuation is based upon independent third-party appraisals and funding will occur in stages throughout first-quarter 2018 as Willbros completes existing pipeline projects.
Additionally, some Willbros senior management are joining WB Pipeline immediately, including Harry New, who is president of Willbros oil and gas segment. The company said others may join WB Pipeline once existing pipeline projects have been completed.
WB Pipeline is expected to operate under the name Willbros Pipeline, an affiliate of Meridien Energy, the release said.
Michael Fournier, Willbros president and CEO, said in a statement, “The sale of these mainline pipeline assets, coupled with our recently completed U.S. tank sale, reduces our risk profile in our U.S. oil and gas operations.”
Willbros will continue to serve the U.S. oil and gas industry through its facilities, pipeline integrity and lineal businesses, according to the release. The company completed the sale of its tank services business to ATS Group LLC in early January.
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