In separate definitive agreements, Enbridge Inc., CVR Energy Inc., and an undisclosed buyer agreed to purchase crude oil business assets from Blueknight Energy Partners LP for $162 million in total cash consideration, including estimated crude oil linefill and inventory.
Enbridge agreed to purchase the crude oil terminalling segment of Blueknight for $132 million, subject to adjustments and excluding crude oil linefill and inventory. The segment includes 6.6 million bbl of crude oil storage in Cushing, Okla.
CVR Energy Inc. subsidiaries agreed to purchase Blueknight’s crude oil pipeline business for $20 million, subject to adjustments and excluding crude oil linefill and inventory. The business includes 604 miles of crude oil pipeline and 300,000 bbl of related crude oil storage primarily in Oklahoma.
Blueknight signed definitive agreement to sell its crude oil trucking business to an undisclosed buyer.
In a statement Dec. 21, Andrew Woodward, chief executive officer of Blueknight, said the deals are a milestone as the company transitions from traditional oil and gas operations into a pure-play, downstream terminalling business focused on infrastructure and transportation end markets.