Valero sells stake in key US CHOPS pipeline system

* Valero sells stake in key Gulf of Mexico pipelines

* 50 pct stake in CHOPS system worth $330 million

* Genesis Energy buys stake, Enterprise operates lines

* Sale is part of plan to sell non-core assets-Valero

NEW YORK, Oct 25 (BestGrowthStock) – San Antonio, Texas-based Valero Corp. (VLO.N: )
said Monday it will sell its 50 percent indirect stake in the Gulf of Mexico’s
Cameron Highway Pipeline System (CHOPS) to oil company Genesis Energy LP
(GEL.N: ) for $330 million.

Valero, the top U.S. independent refinery, will sell its half of Cameron
Highway Pipeline Co., which owns the the 380-mile (610-km) underwater pipeline
system that brings crude from deepwater fields in the Green Canyon area near
Louisiana to refineries along the Texas Gulf Coast, the company said.

“This sale is part of our ongoing strategy of divesting non-core assets,”
Valero Chairman and CEO Bill Klesse said in a statement.

“At the end of a competitive process, we received an
attractive price that unlocks significant value for our
shareholders.”

Enterprise (EPD.N: ), with a 50 percent stake, operates the
CHOPS system, while Valero has held a 50 percent non-operator
stake since 2004. The system is engineered for full capacity of
more than 500,000 barrels per day.

Genesis is a diversified midstream energy partnership with
operations including pipelines and storage tanks across the
southern United States.

The sale is expected to close during the fourth quarter,
Valero said. The company had been receiving annual
contributions of between $27 million and $33 million from its
stake in the pipeline system.

(Reporting by Joshua Schneyer; Editing by Cynthia
Osterman)

Valero sells stake in key US CHOPS pipeline system