Sunoco Logistics and ExxonMobile have formed a joint venture to combine some of their key crude oil logistics assets.
The companies will form Permian Express Partners, with Sunoco contributing its Permian Express 1, Permian Express 2 and Permain Longview and Louisiana Access pipelines.
ExxonMobile will contribute its Longview to Louisiana and Pegasus pipelines, Hawkins gathering system, an idle pipeline in southern Oklahoma and its Patoka, Illinois terminal.
The move will create a stronger crude oil logistics network to meet market demand, provides additional take-away opportunities for shippers and expands ExxonMobil’s options to supply its network of refineries.
Sunoco will be the majority owner and operator of the joint-venture’s assets and ExxonMobil and its affiliates will enter into a preferred provider agreement.
Michael Hennigan, president and CEO of Sunoco, says: ‘This combination of certain strategic crude oil assets, together with our existing and recently acquired Midland Basin assets, greatly enhances our service capabilities for the Permian Basin, one of the most prolific shale areas with incredible growth opportunities.
‘We expect to achieve significantly greater long-term accretion as domestic crude oil production grows over time.’