Pipeline operator Sunoco Logistics Partners LP said it would buy Vitol Group's crude oil unit in Permian Basin in West Texas for $760 million.

The acquisition provides Sunoco with a crude oil terminal in Midland, Texas, with capacity of about 2 million barrels and a crude oil gathering and mainline pipeline system in the Midland Basin, Sunoco said.

Under the deal, Sunoco will buy Vitol's 50% interest in a joint venture, SunVit Pipeline LLC, which supplies Permian crude to multiple markets.

Sunoco said it was offering 21 million common units to partly fund the deal, which is expected to close in the fourth quarter.

The company said its general partners, Energy Transfer Partners LP and Energy Transfer Equity LP, have agreed to take a $60 million cut in their partnership remuneration over two years in connection with the purchase.