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Vinson & Elkins and Latham & Watkins are working on a deal for Phillips 66 Partners of Houston to make its first acquisition: the purchase of a pipeline system and storage spheres from Phillips 66 for $700 million.

Latham & Watkins represented Phillips 66, and V&E represented the conflicts committee that advised the board of directors of the general partner in Phillips 66 Partners.

The pending acquisition, announced Feb. 13, is the first for Phillips 66 Partners, which went public in July 2013 when it was spun off from Phillips 66. Phillips 66 Partners, an energy transportation master limited partnership, will buy Phillips 66′s Gold Product Pipeline System and the Medford Spheres. The transaction is expected to close March 1.

Phillips 66 Partners will finance the purchase with $400 million in cash, the issuance of additional units valued at $140 million, and a five-year, $160 million note payable to a subsidiary of Phillips 66. The board of directors of the general partner of Phillips 66 Partners approved the terms of the deal based on the recommendation of its conflicts committee.

At Latham, Houston partners William Finnegan and Brett Braden lead the deal team with Houston associates Thomas Brandt, Carolyn Check and Trevor Lavelle. Others assisting are tax partner Tim Fenn and associate Bryant Lee, both of Houston; environmental partner Joel Mack of Houston; regulatory partner Kenneth Simon of Washington, D.C.; and real estate partner Kim Boras of Los Angeles.

The V&E team is led by mergers-and-acquisitions partner Alan Bogdanow of Dallas with assistance from associates Michael Allers and Katherine Terrell, both of Dallas. Others, all from Dallas, include tax partner Jim Meyer, litigation partner Michael Holmes and real estate associate Will Russ. In Houston, energy regulatory counsel Sabina Walia and environmental associate Brandon Tuck are also working on the deal.