Alon USA Energy, Inc. said Tuesday it agreed to sell its Amdel and White Oil oil pipelines to an affiliate of Sunoco Logistics Partners L.P. for $68 million.
Alon, which is the US energy subsidiary of Yakum-based Alon Oil Group, said the deal would close before the end of March at which time it would recognize a related one-time pre-tax gain of $53m.
Alon and Sunoco also will enter into a 10-year pipeline agreement, which would allow Alon to retain crude oil transportation rights on the pipelines from the Gulf Coast. Alon, in turn, would commit to ship a minimum of 15,000 barrels per day on the lines.
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