January 5, 2018
San Antonio’s Andeavor has a new agreement to buy the RIO System crude and fracking sand logisitics system in the Permian Basin.
An all-cash agreement includes sale of Sugar Land’s Rangeland Energy II, LLC to Andeavor’s subsidiary Tesoro Refining and Marketing Co. LLC for an undisclosed price.
Rangeland Energy II owns and operates the multi-part distribution line called the RIO System that originates in the Delaware Basin, providing access to crude oil producers and others through its pipeline system — 110 miles of 12″ pipe bridging the Delaware and Midland basins with connections in Loving County and Midland — and a hub rail system near Carlsbad, New Mexico.
The RIO System “provides shippers optionality to access the Colorado City, Cushing, Corpus Christi and Houston markets through Midland,” according to Rangeland President and CEO Chris Keene, who added that “Rangeland II Chief Operating Officer Steve Broker and his team have done an outstanding job of creating value by developing a scalable system with connectivity to the Midland market center and beyond.
The deal is expected to close by the end of the first quarter.
Rangeland Energy said it will re-purpose its Rangeland II management team to work on the next step, Rangeland III, in developing the STEPS logistics terminal, now under construction in Corpus Christi, which will receive and store refined products for transportation primarily to terminals in Mexico.