Tesoro Corp. buys logistical assets in Williston basin

SAN ANTONIO, Texas -- Tesoro Corp. has closed its acquisition of Great Northern Midstream LLC, a crude oil logistics provider.

The acquisition includes the 97-mile BakkenLink crude oil pipeline, which connects to several third-party gathering systems; a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication; and a 154,000 bpd rail loading and a 657,000 bbl storage facility in Fryburg, North Dakota, which can provide outbound deliveries to the West, East and Gulf Coasts.

"These strategically-located assets are expected to integrate well with our existing assets to create an enhanced system that will serve as a platform for growth for Tesoro and Tesoro Logistics," said Greg Goff, chairman, president and CEO of Tesoro Corp. "It also builds upon our existing capabilities to provide full-service logistics options for crude oil producers in North Dakota."

The enhanced system will also benefit Tesoro by providing direct access to additional advantaged crude oil for its West Coast refineries and has the potential to reduce supply costs as the company continues to strengthen its supply position. Additionally, the system will provide ratable pipeline volumes that should ultimately benefit Tesoro Logistics once offered to the master limited partnership, which is expected in 2016.

The financial details of the transaction will remain confidential.