US-based Marathon Oil has agreed to buy four storage terminals in Ohio, US, as well as a stake in the Inland Pipeline from Citgo Petroleum.
The total capacity of the four terminals is 1.7 million barrels of oil equivalent. It is also buying Citgo's 16% stake in the Ohio pipeline, which carries around 52,000 barrels a day.
'The acquisition will increase Marathon's flexibility in supplying transportation fuels to the Midwest,' Doug Sparkman, Marathon senior VP of transportation and logistics says. 'It demonstrates Marathon's commitment to making quality fuels available to our customers by opening new market opportunities in Dayton and Tallmadge, as well as new pipeline markets.'
Citgo is the US refining and marketing arm of Venezuela's state oil company, Petroleos de Venezuela S.A. The company has been closely watched for signals it might sell off its refineries due to political tension. The deal is expected to close in Q4 2007.
Marathon is the fourth-largest US-based fully integrated international energy company engaged in exploration and production, refining and transportation operations. The company has exploration and production activities in the US, the UK, Angola, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya and Norway.
Marathon is the fifth-largest refiner in the US with 974,000 bpd of crude processing capacity in its seven-refinery system. Marathon serves the Midwest and Southeast as a petroleum products marketer with 86 light product and asphalt terminals and the company owns, operates, leases or has an ownership interest in approximately 9,900 miles of pipeline.