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Sunoco Logistics, Exxon to combine pipeline assets in new joint venture

Published 11/10/2016, 08:22 AM
Sunoco Logistics, Exxon to combine pipeline assets in new joint venture
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  • Sunoco Logistics Partners (NYSE:SXL) says it is forming a joint venture with ExxonMobil (NYSE:XOM) to combine some of their key crude oil logistics assets.
  • The JV expands SXL's west Texas footprint, and comes less than two months after an announcement to buy Vitol's crude oil unit in the Permian for $760M.
  • SXL will contribute its Permian Express 1 and 2, Permian Longview and Louisiana Access pipelines to the JV, while XOM's contribution includes its Longview to Louisiana and Pegasus pipelines, Hawkings gathering system, an idle pipeline in southern Oklahoma and its terminal in Patoka, Ill.
  • SXL will own an 85% stake in the Permian Express Partners JV, while XOM will control the remaining 15%.

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