Williams signs Marubeni as Gulfstar FPS partner
BY ROD WALTON World Staff Writer
Thursday, February 07, 2013
2/07/13 at 7:06 AM
Williams Partners LP has found a teammate for its first Gulfstar FPS project to provide production handling, export pipeline and processing services in the eastern deepwater Gulf of Mexico, the Tulsa-based infrastructure company announced Wednesday.
Marubeni Corp., a Japanese trading company, will take a 49 percent stake in the floating production system, which is supported by previously signed deals with producers Hess Corp. and Chevron Corp. The joint-venture deal is expected to close in the second quarter, with Gulfstar FPS becoming operational by mid-2014.
After closing, Tokyo-based Marubeni will contribute approximately $225 million to help fund capital expenditures on the project, Williams said. The new partner also will make monthly contributions.
Williams Partners first announced the Gulfstar FPS and supporting deals in October 2011. The system will tie into the partnership's wholly owned oil, gas gathering and processing assets in the eastern Gulf of Mexico.
"We're very pleased to be following through on our goal of adding a partner to our first Gulfstar project," Alan Armstrong, CEO of Williams Partners and Williams Cos. Inc., said in a statement. "Adding a partner like Marubeni will benefit us significantly, giving us more flexibility in capital spending as we continue to pursue attractive projects in all of our operating areas."
The Gulfstar will be the first spar-based - a type of hull - floating production system with components made entirely in the U.S. Gulf Coast area, Williams said. The facility's initial capacity will be 60,000 barrels of oil and 200 million cubic feet of natural gas per day.
Marubeni is raising its energy profile in the U.S., according to reports. It acquired Omaha, Neb.-based Gavilon LLC, an oil and grain trading company, last year for $3.6 billion.
Original Print Headline: Williams signs on partner for Gulfstar
Rod Walton 918-581-8457
The Gulfstar floating production system is depicted in an artist's rendering. Williams Partners LP said Wednesday that Tokyo-based Marubeni Corp. has agreed to take a 49 percent stake in the project. WILLIAMS PARTNERS LP/Courtesy