Vitol Inc., the U.S. subsidiary of the global Vitol Group, announced it had formed a partnership with Midland-based LPC Crude Oil Inc., and had acquired fifty-percent of the company. The company will conduct operations as LPC Crude Oil Marketing LLC. LPC Crude Oil is a leader in the gathering, marketing, and transporting of oil and condensate in the Permian Basin. As a privately held company, LPC Crude has a long term plan for steady growth with a continued focus on providing excellent customer service.
LPC Crude will continue to operate as a separate entity focusing on its core customer base. The entire management team will remain in place. The new partnership will provide additional reach and resources to grow and better help operators in the Permian Basin move their oil to market, while continuing to provide the excellent customer service that LPC Crude Oil Inc. is known for in the region.
"Vitol is pleased to be joining efforts with the team at LPC Crude Oil to increase both company's efforts to service Permian Basin crude oil producers," said Mike Loya, President of Vitol, Inc. "LPC's President Steve Mills and his team have deep roots in the region, and we look forward to the Vitol-LPC venture broadening our reach and helping us to pursue growth opportunities there."
"This is a great opportunity for LPC to partner with an industry leader," said LPC President Steve Mills. "Vitol brings both the financial heft and expanding terminalling and logistics presence in the Permian to help us grow rapidly while still maintaining the small-company atmosphere that allows us to serve our customers so well."
Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties.
Including the $38.4 million deposit previously paid, total consideration for the acquisition was $811 million, which includes the $768 million purchase price and $43.3 million in normal and customary closing adjustments.