Sunoco Logistics Partners has signed an agreement for the strategic acquisition of Vitol’s Permian Basin crude oil system in West Texas for approximately $760m.

This purchase will provide Sunoco with an approximately two million barrel crude oil terminal in Midland, Texas, a crude oil gathering and mainline pipeline system in the Midland Basin.

The pipeline system includes an acreage dedication from an investment grade Permian producer, and crude oil inventories associated with Vitol’s crude oil purchasing and marketing business in West Texas.

This deal includes the purchase of a 50% interest in SunVit Pipeline, which in turn results in Sunoco owning all SunVit membership interests.

"The addition of the Vitol system is an excellent synergistic fit to our growing crude platform in the Permian Basin."

SunVit links the Midland terminal to Sunoco's Permian Express 2 pipeline, which is essential to bring Permian crude oil to several markets.

This purchase is expected to close in the fourth quarter of 2016 after meeting certain closing conditions and receipt of regulatory approval.

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Sunoco Logistics Partners president and CEO Michael J. Hennigan said: "We are pleased to announce this strategic crude oil acquisition.

"The addition of the Vitol system is an excellent synergistic fit to our growing crude platform in the Permian Basin. The Permian Basin is the most prolific of all of the US shale areas with strong growth expectations.

"The Vitol pipeline assets are located in what we believe are the three best counties in the Midland Basin. Adding a two million barrel terminal in Midland is very complimentary to our Permian strategy.”

Vitol head of the Americas Mike Loya said: “We have had a good working relationship with Sunoco Logistics, including our SunVit JV.

"Sunoco Logistics has a strong strategic position in West Texas and we are confident that they will provide excellent service to customers of the Vitol system. We wish Sunoco Logistics well in the further development of the business.”