HOUSTON, Jan. 3 (Xinhua) -- U.S. refining company Andeavor said on Wednesday that it had agreed to acquire 100 percent of the equity of Rangeland Energy II, LLC, further enhancing its position in the Permian Basin in the U.S. state of Texas.
Rangeland, based in Houston, Texas, owns and operates assets in the Delaware and Midland Basins, including a recently-constructed crude oil pipeline and three crude oil storage terminals.
Houston-based Andeavor plans to integrate the acquired 176-km crude oil pipeline (with ultimate throughput capacity of 145,000 barrels per day) and crude oil storage terminals with its nearby Conan Crude Oil Gathering System, currently under construction.
Once fully integrated, the combination of the two systems will provide producers access to multiple markets by connecting to existing takeaway pipeline systems.
The combined system also supports Andeavor's development of additional gathering systems in the area, as well as enhancing commercial opportunities by providing direct access to the Midland market hub.
Andeavor is a premier, highly integrated marketing, logistics and refining company. Its retail-marketing system includes more than 3,200 stores marketed under multiple well-known fuel brands.
Shale oil production in the Permian Basin, a mature hydrocarbon "super basin" located in west Texas and southeastern New Mexico, reached a new record, averaging 2.75 million barrels per day, exceeding its previous peak set in 1973.
The Permian Basin ranked top among all U.S. shale oil basins in production capacity. By the end of 2018, the Permian surge should push total U.S. liquids production to a new all-time high of 10.5 million barrels per day.
Operators began production in the Permian Basin in the 1920s and have since pumped more than 39 billion barrels of oil there.
