Shell seeking buyers for $1B stake in Ho-Ho pipeline, Bloomberg says

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) is seeking to sell a stake in its Houston-to-Houma crude oil pipeline, and is working with Barclays to solicit offers for a stake of as much as $1B in the conduit, Bloomberg reports.

Shell is said to want to raise money to cover the cost of reversing the flow direction of the 350-mile pipeline, and wants to monetize part of the pipeline so it can use the proceeds to invest in drilling projects that generate higher returns.

The pipeline now carries crude from Houston to Houma, La., to give Gulf coast refineries better to access to crude oil produced in the Eagle Ford and Bakken basins; the pipeline had been called Houma-to-Houston pipeline before the reversal was completed last year.