Oil Producers Slowed by Bankrupt Marketer

By: AP
By: AP

HUTCHINSON, Kan. (AP) _ The bankruptcy of an Oklahoma-based oil marketer has the Kansas oil industry looking at reducing production
as it faces losing tens of millions of dollars in revenue.

Tulsa-based SemGroup LP filed for Chapter 11 bankruptcy protection July 22 after losing at least $2.4 billion in oil futures trading and running up $2.5 billion in debt.

Kansas Independent Oil and Gas Producers Association President Dave Dayvault estimates the move has jeopardized $140 million in payments for crude oil purchased in the last two months from Kansas oil fields.

That could potentially delay or negate payments to producers, landowners and companies that serve the industry.

SemGroup was formed eight years ago by former University of Kansas basketball star Tom Kivisto. It controlled about 20 percent of Kansas' oil purchasing market.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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