Global Infrastructure Partners (GIP) has acquired the largest privately-held oil transportation system in West Texas for $1.83bn (€1.6bn).
The 800-mile pipeline, held in a company known as Medallion Gathering & Processing, is jointly owned by fund manager Energy & Minerals Group (EMG), which has a 51% stake, and energy company Laredo Petroleum, which owns 49%.
Medallion operates a newly constructed crude oil gathering and transportation system.
Adebayo Ogunlesi, GIP’s chairman and managing partner, said: “This acquisition underscores GIP’s long-term partnership approach and strategy of investing in superior quality platforms that deliver the highest level of customer service.”
Medallion will retain its name and operate as a GIP portfolio company headquartered in Irving, Texas. The leadership team will retain current roles and invest alongside GIP in the transaction.
“We are pleased to partner with management to support Medallion as it continues to serve its customers’ rapidly-growing needs,” Ogunlesi said.
Medallion president and CEO Randy Lentz described the transaction as “an exciting and transformational moment in Medallion’s evolution”.
He said: “Combining Medallion’s current team and best-in-class service with GIP’s financial strength and commitment to operational excellence will be the catalyst for further expansion of Medallion’s midstream infrastructure in the Permian Basin.”
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