Tesoro Corporation and Tesoro Logistics have bought the Martinez Crude Oil Marine Terminal in Martinez, California, for $75 million (€57 million).
The terminal is situated on the Sacramento River near Tesoro's Martinez refinery and features a single berth dock, tank storage for crude oil with a capacity of 425,000 barrels, and pipelines. The facility has a throughput of 145,000 barrels a day.
Tesoro paid $67.5 million for the facility in cash and used its equity valued at more than $7.5 million for the rest of the payment.
Tesoro and the partnership have signed a 10 year terminalling agreement with a minimum throughput commitment. The company estimates that the terminal will make it $15 million in incremental revenue.
‘The contribution of the Martinez Crude Oil Marine Terminal marks Tesoro's first drop down to the partnership and demonstrates Tesoro's commitment to capturing the full value of our logistics assets and helping the partnership expand its portfolio,’ says Greg Goff, Tesoro Corporation's president and Tesoro Logistics' chairman. ‘We are committed to growing the partnership's distributions and expect this transaction to be immediately accretive.’