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Occidental Petroleum agreed Thursday to sell its 50 percent interest in BridgeTex Pipeline to Plains All American Pipeline (PAA) for $1.075 billion.

BridgeTex, jointly owned by Occidental and Oklahoma-based Magellan Midstream Partners, owns the BridgeTex Pipeline, a 300,000 barrel per day crude oil pipeline extending from the Permian Basin to the Houston Gulf Coast area.

The BridgeTex Pipeline began service in September 2014.

The sale of Houston-based Occidental’s full stake in BridgeTex will be made in two transactions.

Houston-based PAA will purchase Occidental’s interest in the 400 mile northern leg of the BridgeTex pipeline that runs from the Permian Basin to East Houston for $1.075 billion.

Magellan will then acquire Occidental’s interest in the 40 mile, 24 inch southern leg of the BridgeTex pipeline that runs from Houston to Texas City for $75 million.

“This sale allows us to monetize this important pipeline while retaining long-term cost-advantaged shipping commitments on BridgeTex to ensure access to the key Houston refining markets,” Occidental’s president and CEO Stephen I. Chazen said.

The BridgeTex transaction is contingent on the sale of a portion of Occidental’s Class A shares in PAGP.