Calumet Specialty Products
Partners, L.P. CLMT ("Calumet" or the "Partnership") a leading
independent producer of specialty hydrocarbon and fuel products, today
announced that it has acquired seven crude oil loading facilities and related
assets in North Dakota and Montana from Murphy Oil USA, Inc. ("Murphy"). The
transaction closed on August 9, 2013. Financial terms of the transaction were
not disclosed.
With the acquisition of these loading facilities, all of which are connected
at junction points along Enbridge's North Dakota pipeline system, Calumet will
be positioned to source increased volumes of crude oil directly from local
producers in North Dakota and Montana while continuing to supplement its
feedstock procurement through third-party marketing relationships. By
purchasing increased volumes of feedstock directly from producers, Calumet
expects to enjoy more favorable economics on select portions of the crude oil
it purchases, over the longer term.
As part of this acquisition, Calumet also assumes line space on the Enbridge
system previously held by Murphy. Calumet will have the ability to transport
crude oil directly from the point of lease, into Calumet's newly acquired
crude loading facilities and then into the Enbridge system where it can be
routed to Calumet's refineries and/or third party customers. As part of this
transaction, Calumet and Murphy jointly consented to terminate an existing
crude oil supply agreement wherein Murphy supplies Calumet's Superior,
Wisconsin refinery with up to 10,000 barrels per day of crude oil.
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