Checking off two more asset divestitures Monday, El Paso Corp. announced it has completed or announced $1.35 billion in sales so far this year, approximately 40% of the company’s recently expanded asset sales goal of $3.4 billion for calendar year 2003.

El Paso said it has received $289 million for Valero Energy Corp.’s purchase of El Paso’s Corpus Christi refinery and South Texas refined petroleum product pipeline system and terminal assets (see Daily GPI, Feb. 11). Valero is exercising a purchase option that was part of a June 2001 lease agreement between the companies.

The company also reported that it has closed the previously announced sale of its Florida petroleum terminals and tug and barge operations to TransMontaigne Inc. for approximately $155 million (see Daily GPI, Jan. 15). El Paso acquired these assets through its merger with The Coastal Corp. in 2001. The Florida petroleum terminal business provides bunker fuel for the maritime industry and is a major supplier of residual fuel, diesel, and gasoline throughout Florida.

“The sales of these assets support El Paso’s previously announced 2003 five-point business plan, which includes exiting non-core businesses quickly but prudently, and strengthening and simplifying the balance sheet while maximizing liquidity,” El Paso said in a statement.

However, not all of the energy giant’s asset sales are going as smoothly. A couple of transactions that were announced by El Paso last week to improve its liquidity position have raised a red flag at FERC, which has asked the Houston-based energy company to furnish further details by mid-March (see Daily GPI, Feb. 28).

The Federal Energy Regulatory Commission said it wants to know more about the intended $500 million sale of El Paso ‘s Mid-Continent natural gas assets to Chesapeake Energy Corp. of Oklahoma City, OK (see Daily GPI, Feb. 25); and the sale of $700 million in senior unsecured notes by El Paso pipeline subsidiaries, Southern Natural Gas and ANR Pipeline (see Daily GPI, Feb. 26).

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.