Subsidiaries of Delek Logistics Partners LP (NYSE: DKL) acquired a crude oil storage tank and rail offloading racks from subsidiaries of Delek US Holdings Inc. (NYSE: DK), Delek Logistics said March 31.
The El Dorado offloading facility has two crude oil unloading racks that allow Delek US’ El Dorado, Ark., refinery to receive up to 25,000 barrels per day (Mbbl/d) of light crude, or 12 Mbbl/d,000 barrels per day of heavy crude. There could be some combination, the company added.
The Tyler crude oil storage tank handles about 350 Mbbl of shell capacity supporting Delek US’ Tyler, Texas, refinery.
A throughput agreement for the rail facility, and a tankage agreement for the storage tank, was entered into by the companies. Each was approved by the general partner’s conflicts committee.
The acquisitions were made for a combined $61.9 million in cash. Delek Logistics financed the purchase price through cash and revolving credit facility borrowings.
Uzi Yemin, chairman and CEO of Delek Logistics’ general partner, said the purchase would add about $6.7 million of EBITDA to operations annually, and help pursue the $150 million EBITA run-rate target for year-end 2015.
Delek Logistics Partners LP is based in Brentwood, Tenn.
Recommended Reading
ONGC’s M Field Starts Production in Bay of Bengal
2024-01-09 - ONGC’s M Field represents the second phase of the larger 98/2 Block development project which is expected to reach peak production of 45,000 bbl/d and 10 MMcm/d.
Despite GoM Struggles, 2024 is Still Ripe for Offshore Rigs
2024-01-07 - Though industry experts are predicting 2024 to be a slow year for rigs in the Gulf of Mexico, there is plenty of opportunity for contracts to be awarded in other markets.
E&P Highlights: Jan. 8, 2024
2024-01-08 - Here’s a roundup of the latest E&P headlines including the second biggest deepwater gas find of 2023 and new contract awards.
Light Oil Discovery Made Offshore Namibia
2024-01-11 - Galp Energia said a significant light oil discovery was made in the Orange Basin and a drill stem test will be performed to assess the discovery’s commercial viability
Activity Offshore Norway Expected to Remain Steady in 2024
2024-01-11 - The Norwegian Offshore Directorate provided updates on 2023 activity, including 14 wildcat discoveries and eight projects going online and urging exploration in frontier areas.