2010-11-16-2010-11-15-2010-12-30

To buy entities holding crude oil gathering and transportation assets primarily servicing Bakken area producers which includes gathering of 55,000 BO/d, a 20-mile pipeline, 8 truck terminals and other rights.

Plains All American Pipeline LP, Houston, (NYSE: PAA) has purchased certain crude-oil gathering and transportation assets primarily servicing Bakken area producers from Nexen Holdings U.S.A. Inc., a division of Nexen Inc., Calgary, (NYSE: NXY) for approximately $223 million.

The deal consisted of $170 million for the business and physical assets and approximately $53 million for some 450,000 barrels of inventory and other working capital adjustments.

The assets are primarily in northwestern North Dakota and northeastern Montana and include a lease-gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC-regulated 20-mile, 8-inch pipeline that currently handles approximately 18,000 barrels per day; eight truck terminals and various other contractual rights.

When the deal was announced in November, Plains All American president and chief operating officer Harry Pefanis said, "This acquisition is consistent with our strategy to expand and strengthen our presence in long-lived, growing producing regions and is complementary to our existing Bakken area assets and activities, including our recently proposed Bakken North Pipeline project. We look forward to integrating this suite of well-positioned assets, servicing an expanded customer base and continuing to grow our Bakken business."