Tesoro Logistics has agreed to acquire crude oil, natural gas and produced water gathering systems and two natural gas processing facilities for US$700 million.
Additionally, the company has acquired terminal and storage assets located in Martinez, California from a subsidiary of Tesoro Corporation for $400 million.
“These two acquisitions strengthen TLLP’s portfolio of logistics assets that provide full-service capabilities to both upstream and downstream customers,” said Greg Goff, chairman and CEO of TLLP’s general partner. “TLLP is on target to achieve its 2017 goal of $635 million of net earnings and $1 billion of annual EBITDA. Further, these assets provide optimisation and organic investment opportunities that support future growth.”
In the deal, TLLP has agreed to acquire crude oil, natural gas and produced water gathering systems and two natural gas processing facilities from Whiting Oil and Gas Corporation, GBK Investments, LLC and WBI Energy Midstream, LLC. The North Dakota gathering and processing assets include over 650 miles of crude oil, natural gas, and produced water gathering pipelines, 170 MMcf per day of natural gas processing capacity and 18,700 bpd of fractionation capacity in the Sanish and Pronghorn fields of North Dakota’s Williston Basin.
The revenue from the assets is approximately 90 percent fee-based and backed by acreage dedications from 10 producers. The assets are well utilised based on current production levels and provide organic expansion opportunities that support continued drilling in existing well locations with attractive production economics, TLLP reckons.
The acquisition is expected to close early in the first quarter of 2017.

6th December 2016