First Quarter 2000 |
Kinder Morgan Energy Partners Completes Acquisition
of Shell CO2 Company
Shell CO2 Company, which has played a major role
in efforts to bring CO2 flooding for enhanced oil
recovery to Kansas, has been purchased by Kinder Morgan Energy
Partners, L.P. (NYSE:KMP). KMP plans to continue the efforts
started by Shell CO2 Company in Kansas.
KMP's acquisition of an additional 80% interest in Shell CO2
Company was completed in early April. KMP now owns 100% of the
company which will be renamed Kinder Morgan CO2 Company,
LP. The sale of the Shell interests includes CO2 reserves
in the McElmo Dome and Doe Canyon source fields in Colorado,
interest in the Bravo Dome source field in New Mexico, and the
Cortez, Bravo and Central Basin Pipelines. Kinder Morgan CO2
is now the largest transporter and marketer of carbon dioxide
in the United States, currently delivering approximately 400
MMcf per day. Kinder Morgan CO2 owns the most extensive
CO2 pipeline network in the industry, with over 900
miles of pipelines and a net recoverable CO2 reserve
base in excess of 5 Tcf. CO2 flooding is a proven
technology for increasing the production of oil reserves.
The domestic CO2 supply and transportation industry
is principally focused in the Permian Basin in west Texas and
eastern New Mexico, with other activities in Colorado, Kansas,
Utah, Oklahoma and the San Juan Basin of New Mexico. In 1998,
the Permian Basin produced approximately one million barrels
of oil per day, which represents about 20 percent of the total
U.S. oil production (excluding Alaska). More than 15 percent
of this production was attributed to CO2 flooding.
Many of the Shell CO2 employees were hired by Kinder
Morgan CO2 Company with the purchase. These include
Tim Bradley - president, Chuck Fox - vice president of technology/operations,
Russell Martin - vice president of marketing/business development,
Lanny Schoeling and Paul Nunley - managers of marketing/business
development and Jim Wuerth vice president of finance.
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Pictured right are some of the Shell C02 employees
hired by Kinder Morgan - L-R: Russell Martin, Chuck Fox, Paul
Nunley, and Lanny Schoeling. |
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