Checking off three more asset divestitures last week, El Paso Corp. announced it has completed or announced more than $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 NGI, Feb. 17). 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 NGI, Jan. 20). 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.

On Friday, El Paso announced that it has agreed to sell all of the outstanding shares in Enerplus Global Energy Management Co. to Enerplus Resources Fund for approximately $32 million.

Enerplus Resources Fund is Canada’s oldest and largest public conventional oil and gas income fund. In an effort to expand its Canadian business in 2000, El Paso formed a strategic affiliation with The Enerplus Group.

The transaction still must receive Enerplus Resources Fund unitholder approval and is expected to close in the second quarter 2003.

“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 late last month that were intended 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 NGI, March 3).

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 NGI, March 3); and the sale of $700 million in senior unsecured notes by El Paso pipeline subsidiaries, Southern Natural Gas and ANR Pipeline.

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