BP Plc will sell 15 terminals in the United States to pipeline company Kinder Morgan Inc in a $350 million deal, as it sheds assets to pay for liabilities arising from its 2010 Gulf of Mexico oil spill.
U.S. Attorney General Loretta Lynch said earlier this month that BP would have to pay more than $20 billion in fines to resolve claims arising from the Macondo well blowout, which killed 11 workers and spewed more than three million barrels of crude oil into the sea.
BP has said its total pre-tax charge for the disaster is now about $53.8 billion.
Kinder Morgan said on Tuesday it would hold 14 terminals under a joint venture with BP and have sole ownership of one terminal. The pipeline company will own 75 percent of the joint venture.
The terminals, which can store about 9.5 million barrels of refined products, are located across the United States.
BP’s strategy of paying liabilities by selling assets has eroded about a fifth of its earnings base before 2010.
On the other hand, Kinder Morgan has continued to expand at a rapid pace.
The company bought out Royal Dutch Shell Plc’s stake in a U.S. natural gas joint venture in July.
Earlier this year, Kinder Morgan entered North Dakota’s Bakken shale with a $3 billion acquisition of Hiland Partners, a pipeline and logistics company.
(Reporting by Anannya Pramanick in Bengaluru; Editing by Kirti Pandey)
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