Staff and Wire Reports
TULSA, OK -- A Tulsa-based company announced Tuesday it will pay $289 million to acquire oil storage and pipeline assets from BP Pipelines.
In a news release, Magellan Midstream Partners LP will acquire 7.8 million barrels of crude oil storage in Cushing as part of the deal.
BP has been working to shed some of its assets to help pay for the massive spill in the Gulf of Mexico. The company has spent more than $3 billion on cleanup and damages so far, and it has agreed to set aside another $20 billion for future damage claims.
BP spokeswoman Sheila Williams said the pipeline sale is not part of a previously announced plan to sell $10 billion in assets over the next 12 months.
The companies were negotiating the pipeline sale for several months, well before the April 20 rig explosion responsible for the oil spill, she said.
"This is a deal that's been in the pipeline for quite some time," Williams said.
Oil supplies in Cushing greatly influence the price of oil on the New York Mercantile Exchange.
The Associated Press contributed to this story.