California Resources Corp. Buys Critical Pipeline for $63 Million

California Resources Corp., the state's largest oil producer, has agreed to pay $63 million for a group of assets that includes a critical pipeline. The purchase from Denver-based CorEnergy Infrastructure Trust Inc. is expected to close by October 1.

The pipeline's closure on December 1 effectively cut off Kern County oil fields from Bay Area refining. The acquisition will provide California Resources Corp. with about 2,000 miles of pipeline capacity.

Kern County's South Belridge Oil Field is among the most productive in California. The purchase is expected to have a significant impact on the state's oil production.