PBF Energy Announces Supply Agreement with Continental Resources for Bakken Crude Oil

abarrelfullabarrelfull wrote on 11 Apr 2013 07:47
Tags: continental n-america pbf refinery usa

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PBF Energy Inc. (NYSE: PBF) announced today the signing of an agreement with Continental Resources Inc. (NYSE: CLR) to supply PBF with Bakken crude oil, which will be delivered by rail to PBF’s double-loop track at its refinery in Delaware City, DE.

Commenting on the transaction, Don Lucey, PBF’s Chief Commercial Officer, said, “We are pleased to be working directly with Continental Resources, a leader in domestic crude oil production and a major producer and supplier in the Bakken play. We look forward to growing our relationship with them.”

Continental Resources is the largest producer and leaseholder in the Bakken, with significant supply arrangements with refiners on the West Coast, the Gulf Coast, and now the East Coast. Continental Resources President and Chief Operating Officer, Rick Bott, added, “This unique transaction illustrates the emerging shift in the light sweet crude market. In addition to diversifying Continental’s customer base and streamlining our value chain, it allows us to deliver unblended premium Bakken crude to the East Coast – a market that has historically been driven by imports of foreign oil.”

PBF’s Chief Executive Officer, Tom Nimbley, said, “PBF has made significant investments in acquiring rail cars and developing our East Coast rail delivery infrastructure to increase our access to North American crude oil, which positions PBF to benefit from these cost-advantaged crudes. Delaware City’s heavy and light crude rail discharge facilities allow us to work directly with producers in Canada and the Mid-continent, like Continental Resources, and provide us with a competitive advantage versus northeast refiners that rely on third parties to deliver North American crude oil.”

PBF also announced that the company opened a new office in Oklahoma City. This office, along with PBF’s Calgary, Alberta office, will focus on sourcing North American crude oils and feedstocks for the company’s refineries.

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