Tuesday, May 8, 2012

Blueknight  to  build 65-mile pipeline, provide crude oil service for XTO Energy

OKLAHOMA CITY, Okla. - Blueknight Energy Partners, L.P. (BKEP) on May 1 announced plans to construct a crude oil pipeline as part of a long-term transportation agreement with XTO Energy Inc., a subsidiary of ExxonMobil Corp.

BKEP will build a 65-mile pipeline from southern Oklahoma to Wynnewood, Okla., where it will intersect with an existing BKEP pipeline. The pipeline will transport committed XTO crude oil production from the Woodford Shale area in Southern Oklahoma to BKEP's crude oil terminal in Cushing, Okla.

"We're pleased to have the opportunity to provide XTO with an efficient and reliable way to transport their crude oil production from the Woodford Shale to the market hub in Cushing…” said J. Michael Cockrell, Blueknight Energy Partners' president and chief operating officer.

BKEP expects construction of the new pipeline and associated enhancements to its Oklahoma mainline system to begin this quarter with completion targeted early-mid 2013 at an approximate total cost of $37 million.

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