September 22, 2017 / 12:35 PM / a year ago

UPDATE 1-Phillips 66 to sell assets to MLP in $2.4 bln deal

(Adds details, background)

Sept 22 (Reuters) - Phillips 66 Partners LP, the master limited partnership (MLP) of Phillips 66, said it would buy assets from the refiner in a deal valued at $2.4 billion, including debt, in its biggest acquisition ever.

The MLP said it would buy a 25 percent interest in two of the refiner's pipelines in the Bakken basin, and a 100 percent interest in the Merey Sweeny LP coke processing unit.

MLPs are formed by oil companies to buy and operate midstream assets. Such companies distribute excess cash to its investors in the form of tax-deferred dividends.

The Bakken pipeline assets - Dakota Access LLC and Energy Transfer Crude Oil Company LLC - include 1,926 combined pipeline miles and 520,000 barrels per day of crude oil capacity, Phillips 66 Partners said on Friday.

The deal is expected to close in early October. (Reporting by John Benny; Editing by Sriraj Kalluvila)

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