TransCanada to acquire ConocoPhillips' interest in Keystone Pipeline

CALGARY, Alta. - TransCanada Corp. on June 16 announced an agreement to acquire Keystone Pipeline System through the acquisition of ConocoPhillips' remaining interest in the project for approximately US$550 million plus the assumption of approximately US$200 million of short-term debt. As a result, TransCanada will become the sole owner of Keystone Pipeline System.
The purchase price reflects ConocoPhillips' capital contributions and includes an allowance for funds used during construction.
TransCanada will also assume responsibility for ConocoPhillips' share of the capital investment required to complete the project of approximately US$1.7 billion through the end of 2012. The transaction is expected to close in the third quarter 2009.
Keystone will be one of the largest oil delivery systems in North America, with capacity to deliver 1.1 million b/d.
The deal, slated to be closed in the third quarter, follows TransCanada's acquisition of 20.1 percent of Keystone from ConocoPhillips last year.