US involved in US$2Bn acquisition of oil pipeline system
Business | August 9, 2016
Our Houston and Washington, DC offices represent Enbridge in the (i) formation of MarEn Bakken Company LLC, a joint venture between affiliates of Enbridge Energy Partners, L.P. and Marathon Petroleum Corporation and (ii) acquisition by MarEn from Energy Transfer Partners, L.P. and Sunoco Logistics Partners, L.P. of a 49 percent equity interest in a holding company that owns a controlling 75 percent interest in the Bakken Pipeline System for US$2 billion.
The Bakken Pipeline System consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline, each of which is under construction. Once completed, such pipelines will transport crude oil from North Dakota’s Bakken Shale over a combined 2,000 miles to the Midwest and Gulf Coast. The Dakota Access Pipeline alone is expected to deliver at least 470,000 barrels of oil per day.
The deal is expected to close in the third quarter of 2016. Following the closing, ETP and Sunoco Logistics will hold a 38.25 percent ownership in the pipeline system, MarEn will hold a 36.75 percent stake therein and Phillips 66 will hold the remaining 25 percent interest. ETP will continue to oversee pipeline construction and Sunoco Logistics will handle operations.
The team, led by Deb Gitomer, includes Robert Phillpott, Edward Lewis, Ross Staine, Islara Irgit, Ian Jelsma (Houston) and Daniel Wellington (Washington, DC).
The Bakken Pipeline System consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline, each of which is under construction. Once completed, such pipelines will transport crude oil from North Dakota’s Bakken Shale over a combined 2,000 miles to the Midwest and Gulf Coast. The Dakota Access Pipeline alone is expected to deliver at least 470,000 barrels of oil per day.
The deal is expected to close in the third quarter of 2016. Following the closing, ETP and Sunoco Logistics will hold a 38.25 percent ownership in the pipeline system, MarEn will hold a 36.75 percent stake therein and Phillips 66 will hold the remaining 25 percent interest. ETP will continue to oversee pipeline construction and Sunoco Logistics will handle operations.
The team, led by Deb Gitomer, includes Robert Phillpott, Edward Lewis, Ross Staine, Islara Irgit, Ian Jelsma (Houston) and Daniel Wellington (Washington, DC).