PetroCanada is selling its gas liquids business to Conoco Inc. and its Canadian affiliate. The sale, which is part of the Canadian integrated oil company's strategy to focus on core businesses and growth opportunities, will result in an estimated C$95-million aftertax gain, subject to adjustments. Most of that amount will be included in Petro-Canada's first-quarter earnings. The transaction's terms were not disclosed. Conoco expects the purchase, which includes North America's fifth-largest gas processing plant, to be immediately accretive to earnings. The acquisition augments the Houston company's existing Canadian assets that recently grew with the purchase of gas producing properties from Renaissance Energy Ltd. "This creates a solid base for Conoco's future growth in western Canada, which is one of the fastest growing gas producing basins in North America. Both acquisitions fit our longterm strategy to better meet the growing North American demand for gas," said Rob McKee, Conoco's executive vice president for global exploration and production. The companies expect to close the transaction during the second quarter. The assets consist of a gas liquids extraction plant at Empress, Alberta, a liquids pipeline from Empress to Winnipeg, related terminals and storage facilities and a marketing operation based in Calgary. Additional nonoperated assets included in the transaction, but subject to rights of first refusal by other parties, are fractional interests in the Cochin pipeline and related facilities, the Fort Saskatchewan fractionator and the Rimbey pipeline. Virtually all of the division's approximately 140 employees have accepted positions with Conoco. -Petroleum Finance Week
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