Holly Corp. said it has entered a definitive agreement with a subsidiary of Sinclair Oil Corp. to purchase Sinclair’s 75,000 bpd refinery in Tulsa, Oklahoma, and 2.3 million bbl of storage for $128.5 million.

Under terms of the agreement, Holly will also purchase the refinery’s inventory of approximately 500,000 bbl at the time of closing at market value. Holly plans to integrate the facility with its existing 85,000 bpd Tulsa refinery.

“This acquisition represents a unique synergistic opportunity to form the highest complexity factor refining facility in the Midcontinent while substantially reducing previously planned capital expenditures at our existing Tulsa refinery,” said Holly Corp. Chairman and CEO Matt Clifton.

The Arctic holds about 22 percent of the world’s undiscovered oil and natural gas resources, but the inherent expense and issues involved may diminish the economic incentive to produce those resources, according to a report from the Energy Information Administration.

The Arctic resource base is largely composed of natural gas and natural gas liquids, which are significantly more expensive to transport over long distances than oil, the report states.

The Arctic, defined as the Northern hemisphere region located north of the Arctic Circle, is mostly oceanic with one-third occupied by land. It contains portions of Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the United States.