By OGJ editors
HOUSTON, Apr. 16 -- Houston-based energy trading and marketing firm Saracen Energy Partners Wednesday reported it will acquire the US petroleum trading and marketing business of Williams's Cos. Inc. of Tulsa for $23 million, plus the assumption of future obligations totaling about $16.5 million.
The assets include transportation contracts, forward purchase and sale contracts, and inventory and are mainly "associated with a refined products marketing business concentrated in the Midwest," Saracen said.
Saracen was founded by former Vitol Group Vice-Chairman Neil Kelley and former Vitol Gas & Electric Pres. Michael Kutsch. Kelley, Saracen president and CEO, noted that the firm would use the acquisition "to ultimately launch a broader multicommodity platform in the physical and financial energy markets in North America."
As part of this transaction, Saracen will hire the senior commercial oil team from Williams.
Williams said it would provide certain transition services and will operate the business of behalf of Saracen until final closing, expected on July 1. The transaction was effective Apr. 1.
