Andeavor agrees to acquire Rangeland Energy II

Integrated marketing, logistics and refining company Andeavor has reached an agreement to acquire 100% of the equity of Rangeland Energy II from US-based midstream company Rangeland Energy.

The deal is expected to enhance Andeavor’s position in the Permian Basin.

Rangeland’s assets are based in the Delaware and Midland Basins, including a recently constructed crude oil pipeline, three crude oil storage terminals, as well as a frac sand storage and truck loading facility.

The crude oil and frac sand logistics system is expected to enable the company to have access and optionality to multiple crude oil producers and end markets.

Rangeland Energy president and CEO Chris Keene said: “We look forward to continuing to work with EnCapFlatrock Midstream as we leverage our successful terminalling experience to develop the STEPS Terminal in Corpus Christi and pursue exciting new business opportunities in Canada.”

Andeavor is planning to integrate the acquired 110m crude oil pipeline and crude oil storage terminals with its Conan Crude Oil Gathering System, which is currently under construction.

Upon completion of the integration exercise, the company is expected to leverage the combination of the two systems to provide producers access to multiple markets by connecting to existing takeaway pipeline systems.

Furthermore, the combined system is expected to support Andeavor’s development of additional gathering systems in the area, in addition to providing direct access to the Midland market hub, thereby enhancing commercial opportunities.

Subject to customary closing conditions such as regulatory approval, the transaction is scheduled to close in the first quarter of this year.