BP in pipeline deal with Panama company
May 30, 2008
According to the Associated Press, a unit of BP PLC said recently it signed a deal with a Panamanian company to transport crude oil via pipeline from the Atlantic side of the Central American country to the Pacific side.
By eliminating the need to sail crude oil tankers around the southern tip of South America, the seven-year deal will cut about 30 days off the time it currently takes BP to move Angolan crude from the Atlantic Ocean to U.S. West Coast refineries.
The deal between BP Products North America and Petroterminal de Panama SA entails reversing the flow of crude oil through the 81-mile Trans-Panama Pipeline and modernizing it. Work on the pipeline is expected to take about two years.
Under the agreement, BP will acquire 5 million barrels of storage and commit to pipeline shipments of 65,000 barrels per day.