Tesoro Corporation (TSO) (“Tesoro”) has closed the previously announced acquisition of Great Northern Midstream LLC (“Great Northern Midstream”), a crude oil logistics provider which owns and operates high-quality, recently constructed crude oil pipeline, gathering system, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
Consistent with the details of the transaction announced on December 8, 2015, the acquisition includes:
- the 97-mile BakkenLink crude oil pipeline, which connects to several third-party gathering systems;
- a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication;
- a 154,000 barrel per day rail loading and a 657,000 barrel storage facility in Fryburg, North Dakota which can provide outbound deliveries to the West, East and Gulf Coasts.
“These strategically-located assets are expected to integrate well with our existing assets to create an enhanced system that will serve as a platform for growth for Tesoro and Tesoro Logistics,” said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation. “It also builds upon our existing capabilities to provide full-service logistics options for crude oil producers in North Dakota.”
The enhanced system will also benefit Tesoro by providing direct access to additional advantaged crude oil for its West Coast refineries and has the potential to reduce supply costs as the Company continues to strengthen its supply position. Additionally, the system will provide ratable pipeline volumes that should ultimately benefit Tesoro Logistics once offered to the master limited partnership, which is expected in 2016.
The financial details of the transaction will remain confidential.
Tesoro Corporation, a Fortune 100 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates six refineries in the western United States with a combined capacity of 875,000 barrels per day and ownership in a logistics business which includes an interest in Tesoro Logistics LP (TLLP) and ownership of its general partner. Tesoro`s retail-marketing system includes over 2,300 retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA Gasoline(TM) and Tesoro® brands.