Rangeland Energy forms joint venture with Delek Logistics Partners to construct 107-mile crude oil pipeline
Clients Rangeland Energy, LLC
Jones Day represented Rangeland Energy, in connection with the formation of a joint venture with Delek Logistics Partners, LP, the logistics arm of Delek US Holdings, Inc., a downstream energy company. Delek Logistics will own 33% of the joint venture, which will construct a 107-mile crude oil pipeline at a cost of approximately $125 million to connect production from the Delaware Basin to Midland, Texas. The RIO Pipeline will have an initial capacity of 55,000 barrels per day and is expected to be placed in service in the first half of 2016. A subsidiary of Delek US has entered into a long-term agreement to be an anchor shipper of crude oil on the RIO Pipeline.