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UPDATE 1 - United Refining to buy New York marine terminal

NEW YORK, Oct 9 (Reuters) - United Refining Inc has agreedto buy Phillips 66's marine terminal and associatedassets near New York Harbor, a deal that will add afive-million-barrel oil storage facility to the company'snortheast assets, the two companies said on Tuesday.

Pending regulatory approval, United Riverhead Terminal Inc.,an affiliate of United Refining, will take ownership theRiverhead, New York terminal, about 80 miles east of the NewYork Harbor, at the end of October.

Terms of the deal were not disclosed.

The marine terminal is currently used to store and shipcrude oil, heavy fuels, diesel and gasoline. Its offshore marineplatform is the only deepwater loading and unloading facility onthe U.S. East Coast and can handle Suezmax vessels andVery-Large Crude Carriers (VLCC) tankers.

Phillips 66 said in a statement that the sale is part of itsstrategy to divest assets that do not fit with its long-termbusiness objectives.

Houston, Texas-based Phillips in June sold its 185,000barrel-per-day refinery in Trainer, Pennsylvania to MonroeEnergy, LLC, a subsidiary of Delta Air Lines Inc .

United Refining operates a 65,000 barrel-per-day refinery inWarren, Pennsylvania.

(Reporting by Selam Gebrekidan; Editing by Bob Burgdorfer)

((selam.gebrekidan@thomsonreuters.com)(646 223 6125)(ReutersMessaging: selam.gebrekidan.reuters.com@reuters.net))

Keywords: MARINE TERMINAL/PHILLIPS UNITED