Pacific Energy Partners, L.P.

Pacific Energy Partners, L.P.

March 22, 2005 17:30 ET

Pacific Energy Partners, L.P. Announces Equity Investment by First Reserve Corporation in Its General Partner


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PACIFIC ENERGY PARTNERS, L.P.

NYSE SYMBOL: PPX

MARCH 22, 2005 - 17:30 ET

Pacific Energy Partners, L.P. Announces Equity
Investment by First Reserve Corporation in Its General
Partner

LONG BEACH, Calif.--(CCNMatthews - Mar 22, 2005) -

Pacific Energy Partners, L.P. (NYSE:PPX) ("Pacific Energy") announced
that on March 21, 2005, an affiliate of First Reserve Corporation
acquired from Lehman Brothers Merchant Banking ("LBMB") a minority
interest in LB Pacific, LP, owner of Pacific Energy GP, LP, the general
partner of Pacific Energy. LBMB and its affiliates will continue to own
a controlling interest in LB Pacific, LP. As a result of its ownership
interest, First Reserve will be entitled to nominate one director to the
Board of Directors of Pacific Energy Management LLC, the managing
general partner of Pacific Energy GP, LP.

"We are pleased to welcome First Reserve Corporation as an owner of the
general partner of Pacific Energy," stated Irv Toole, President and
Chief Executive Officer. "With their knowledge of the energy industry,
we will be in an even stronger position to continue to strengthen our
strategic business units and grow through acquisition and new project
development."

About Pacific Energy:

Pacific Energy Partners, L.P. is a master limited partnership
headquartered in Long Beach, California. Pacific Energy is engaged
principally in the business of gathering, transporting, storing and
distributing crude oil and other related products in California and the
Rocky Mountain region, including Alberta, Canada. Pacific Energy
generates revenues primarily by transporting crude oil on its pipelines
and by leasing capacity in its storage facilities. Pacific Energy also
buys, blends and sells crude oil, activities that are complementary to
its pipeline transportation business.

About First Reserve Corporation:

Based in Greenwich, Connecticut, and with offices in Houston and London,
First Reserve Corporation (www.firstreserve.com) is the largest and
oldest private equity firm specializing in the energy industry with $4.7
billion under management across four active funds. Throughout its
25-year history, First Reserve has developed a strong franchise of
investing exclusively in the global energy industry, utilizing its
specialized industry knowledge. First Reserve has funded more than 80
principal transactions and completed more that 200 add-on acquisitions
with its core companies. First Reserve's current investments include
Dresser-Rand, Dresser, Inc., Pride International, and Quanta Services.
Former investments include National Oilwell, Weatherford International,
Superior Energy Services and Maverick Tube.

This news release may include "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact included or
incorporated herein may constitute forward-looking statements. Although
Pacific Energy believes that the forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to be correct. The forward-looking statements involve risks and
uncertainties that may affect Pacific Energy's operations and financial
performance. Among the factors that could cause results to differ
materially are those risks discussed in Pacific Energy's filings with
the Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2004.

For additional information about the Partnership, please visit
www.PacificEnergy.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pacific Energy Partners, L.P.
    Aubrye Harris, 562-728-2871
    Manager, Investor Relations
    562-728-2881 (FAX)
    email: aharris@PacificEnergy.com