Oneok Inc. of Tulsa, OK, agreed to sell its 42.3% interest inthe Indian Basin Gas Processing Plant and gathering system for $55million to El Paso Field Services Co. The transaction is expectedto close by the end of March.

The Indian Basin Plant, operated by Marathon Oil, is in EddyCounty, NM, and has processing capacity of 240 MMcf/d, producingmore than 10,000 b/d of natural gas liquids. Oneok acquired itsmajority interest in the plant when it acquired the gas propertiesof Western Resources in 1998.

The facilities are adjacent to El Paso Field Services’ 800-mileCarlsbad gathering system and include a cryogenic processing plantand amine treating facility, plant and field compression totaling20,000 horsepower and more than 60 miles of gathering line. Currentthroughput is about 225 MMcf/d.

“These assets provide an outstanding fit with our existingCarlsbad gathering system, which has seen consistently strongdrilling and volume increases over the last several years,” saidRobert G. Phillips, El Paso Field Services president. “We have beenlooking for the right opportunity to strengthen our processing andtreating capabilities in this area and this plant, with itspercentage-of-proceeds-style contracts and proximity to ourexisting assets, will significantly contribute to our growth in2000.”

“As we have in the past, we will exit those areas that no longerrepresent strategic value while continuing to review and acquireassets which strengthen and complement our growing asset base,”said Oneok President David Kyle. The transaction is subject to HartScott Rodino review and third party consents and is expected toclose by the end of the first quarter 2000. No further comment wasavailable from El Paso by press time.

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