Plains All American Pipeline Acquires 50 Percent Interest in Settoon Towing
Plains All American Pipeline, L.P. announced that its subsidiary, Plains Marketing, L.P., has acquired a 50% membership interest in Settoon Towing LLC. The effective date of the transaction was November 1, 2006 and the cash purchase price was approximately $33 million.Armstrong noted that PAA has had a long-standing business relationship with Settoon and PAA is currently Settoon's largest customer with 22 tugs and 22 tank barges under charter. Settoon Towing LLC owns and operates a fleet of 57 transport and storage barges (including three on lease or charter) as well as 30 transport tugs (including three on lease or charter). Settoon's core business is the gathering and transportation of crude oil and produced water from inland production facilities across the Gulf Coast. It conducts its operations out of two facilities in south Louisiana, which are strategically located on the Gulf Intercoastal Waterway and provide access to numerous inland waterways.