US oil pipeline operator Andeavor Logistics (formerly Tesoro) has entered into an agreement with Western Refining to take over its rival Western Refining Logistics (WNRL) for US$1.5bn, as part of its strategy to expand its activities into the Permian Basin (Texas) and New Mexico. Western Refining Logistics owns crude oil pipelines and gathering assets in Southern New Mexico and in the Permian Basin in West Texas.
In June 2017, Tesoro acquired Western Refining for US$4.1bn, along with a minority stake in Western Refining Logistics. The transaction created a highly integrated and geographically diversified refining, marketing and logistics company. In the upstream sector, it expands opportunities for logistics growth in crude oil production basins and product regions, particularly in the Permian basin. In the downstream sector, Western Refining brings its three operational refineries in El Paso, Gallup, New Mexico and St. Paul Park, Minnesota, with a combined capacity of 237,000 bbl/d), to Tesoro's existing portfolio of refineries, with a combined capacity of 935,500 bbl/d, expanding the combined company's refining capacity to more than 1.1 mb/d. Tesoro's retail marketing system also expands from over 2,400 service stations to more than 3,000.