BAKERSFIELD, Calif. (KERO) — California Resources Corporation's planned $60 million-plus acquisition of Crimson Midstream Holdings could give its organization, along with independent oil producers in Kern County, direct access to Bay Area refineries through 2,000 miles of pipeline spanning much of the state.
CRC President and CEO Francisco Leon praised the deal in a release from Aug. 10th.
"This diversified midstream network will enhance our ability to efficiently deliver California-produced barrels directly to the highest-value markets, while increasing operating flexibility and flow assurance across our portfolio. Importantly, these strategic, difficult-to-replicate assets further strengthen our California-focused strategy and support durable long-term value creation," Leon said.
The release also notes that Central Valley producers, including independents, will have reliable access to the highest-value markets and increased oil transportation options as a result of the acquisition.
The Western States Petroleum Association declined to weigh in on the deal. A spokesperson for the nonprofit said they are "not able to discuss individual projects/transactions such as this one."
Ben Anderson, President of Daybreak Oil and Gas, an independent that operates the East Slope project in the southeastern part of the San Joaquin Basin, spoke with us on Aug. 12 and said the acquisition is a net positive for Kern County's oil industry.
"We've been looking forward to that pipeline being open, hoping that that pipeline would be open, because we do have a couple of fields that would take advantage of it right away if they open it back up completely," said Anderson. "I'm not the only operator that would be in that boat wanting to, you know, mix my metaphors here, but jump into that pipeline."
The purchase of the pipeline is expected to be completed in the third quarter of 2026 with more information to follow soon after.
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