Global Infrastructure Partners (GIP) has acquired the largest privately-held oil transportation system in West Texas for $1.83bn (鈧�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鈥檚 chairman and managing partner, said: 鈥淭his acquisition underscores GIP鈥檚 long-term partnership approach and strategy of investing in superior quality platforms that deliver the highest level of customer service.鈥�
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.
鈥淲e are pleased to partner with management to support Medallion as it continues to serve its customers鈥� rapidly-growing needs,鈥� Ogunlesi said.
Medallion president and CEO Randy Lentz described the transaction as 鈥渁n exciting and transformational moment in Medallion鈥檚 evolution鈥�.
He said: 鈥淐ombining Medallion鈥檚 current team and best-in-class service with GIP鈥檚 financial strength and commitment to operational excellence will be the catalyst for further expansion of Medallion鈥檚 midstream infrastructure in the Permian Basin.鈥�
