-Valero Energy Partners’ board of directors approved the acquisition of two terminals in Texas and Louisiana from Valero Energy Corp. for $671 million. The terminal in Texas consists of storage tanks with 3.6 million barrels of capacity and supports Valero’s Houston refinery. The 10-million-barrel terminal in Norco, La., supports Valero’s St. Charles refinery.
-Magellan Midstream Partners and Plains All American Pipeline formed a 50/50 limited liability company to build, own and operate the Saddlehorn pipeline. The 550-mile pipeline will transport crude oil from the DJ Basin to storage facilities in Cushing, Okla., owned by Magellan and Plains. The project is estimated to cost at least $800 million.
-Refiners on the West Coast could seek a Jones Act waiver amid the refinery workers’ strike and the Feb. 18 explosion at ExxonMobil’s Torrance, Calif., refinery, Platts reports. Analysts believe refiners could argue that a waiver is needed to avert a potential gasoline shortage. Commercial reasons alone, however, do not meet the government’s criteria for a waiver, and a national security justification is needed. While no refiners have applied for a waiver, sources say ExxonMobil is considering such a request. A report released Thursday by the Center for Strategic and International Studies said the Jones Act makes it "virtually impossible" to move oil to and from the West Coast.
-Meanwhile, ExxonMobil settled a long-running legal battle over environmental damage in New Jersey for $250 million. Via the New York Times, the lawsuit was filed in 2004 by the New Jersey Department of Environmental Protection, which sought $8.9 billion in wetlands contamination — allegedly from the company’s Bayonne and Linden refineries. A state Superior Court judge was thought to be close to a decision on damages when Gov. Chris Christie’s administration last month petitioned the court to hold off amid settlement talks.
-Coalition air strikes and low oil prices have hindered ISIS’ ability to extract, refine and sell oil on the black market, Bloomberg reports. The Financial Action Task Force said in a report released today the group must seize additional territory in order to exploit more oil resources. It is believed ISIS earns $1 million per day from black market oil sales.