January 20, 2005 -- Tulsa, Oklahoma – SemCanada, L.P. announced today it signed a definitive purchase and sale agreement to buy Central Alberta Midstream (CAMS) from BP Canada Energy Company and Chevron Canada Resources, Canadian subsidiary of ChevronTexaco Corp. The purchase of CAMS, the largest licensed sour gas processor in Alberta, Canada, is expected to close during first quarter 2005 upon completion of regulatory approval. The agreement was signed on January 17 and the purchase price was not disclosed.
Based in Calgary, Alberta, CAMS’s assets include four gas processing plants and more than 600 miles of natural gas gathering pipeline in Alberta. The company employs an office and field staff of about 260. CAMS provides an integrated gathering and processing service with several options for wet or dry, sweet or sour gas gathering and processing, as well as dehydration, field compression, liquid recovery and sulphur forming and handling.
SemCanada is a wholly owned subsidiary of SemGroup, L.P. Tom Kivisto, SemGroup president and chief executive officer, said that CAMS is a well established Canadian midstream business with significant upside potential. "The CAMS plants have a working capacity of 900 million cubic feet of gas per day, but their combined licensed capacity is 1.5 billion cubic feet of gas per day," Kivisto said. "These plants are 100 percent feebased which makes them excellent complements to our existing business."
Kivisto said that CAMS will retain its name and logo identity in Canada.
Dave Pope, SemCanada president and chief operating officer, said that CAMS’s dedicated production is especially attractive to SemCanada. Currently, 30 percent of the volume being processed is dedicated to the CAMS plants for the life of the reserves. "This acquisition adds to our Canadian energy merchant business, Seminole Canada Gas Company, and provides significant opportunities for producers to access our markets throughout North America," Pope said.
Three sour gas plants are included in the purchase: Kaybob South No. 3, Kaybob Amalgamated and West Whitecourt. The fourth plant, West Fox Creek, is a sweet gas processing facility. At present, the plants process a total of 700 million cubic feet of gas per day from approximately 1,000 wells located across 181 townships, representing a 25,000 square-mile catch area.
SemGroup, L.P. is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. It is ranked #14 on Forbes magazine’s list of America’s Largest Private Companies. For additional information, visit www.semgroupcorp.com.
BP Canada Energy Company is Canada’s leading natural gas value chain company. We primarily explore for, develop, produce, process, market and trade natural gas and its derivatives. We are also leading oil and aviation production marketers, and are Canada’s leading lubricants brand. Headquartered in Calgary, Alberta, our businesses employ over 1400 Canadians. For more information, visit www.bp.com.
Director - Commercial Development
BP Canada Energy Company
Government and Public Affairs
Chevron Canada Resources