Global Infrastructure Partners (GIP) has acquired the largest privately-held oil transportation system in West Texas for $1.83bn (€1.6bn).

The 800-mile pipeline, held in a company known as Medallion Gathering & Processing, is jointly owned by fund manager Energy & Minerals Group (EMG), which has a 51% stake, and energy company Laredo Petroleum, which owns 49%.

Medallion operates a newly constructed crude oil gathering and transportation system.

Adebayo Ogunlesi, GIP’s chairman and managing partner, said: β€œThis acquisition underscores GIP’s long-term partnership approach and strategy of investing in superior quality platforms that deliver the highest level of customer service.”

Medallion will retain its name and operate as a GIP portfolio company headquartered in Irving, Texas. The leadership team will retain current roles and invest alongside GIP in the transaction.

β€œWe are pleased to partner with management to support Medallion as it continues to serve its customers’ rapidly-growing needs,” Ogunlesi said.

Medallion president and CEO Randy Lentz described the transaction as β€œan exciting and transformational moment in Medallion’s evolution”.

He said: β€œCombining Medallion’s current team and best-in-class service with GIP’s financial strength and commitment to operational excellence will be the catalyst for further expansion of Medallion’s midstream infrastructure in the Permian Basin.”

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