The value of the agreement was not disclosed.
The Pecos River Pipeline is a 112.6km long project running from Pecos to Crane in the US state of Texas.
It is 16in wide in diameter and will help the producers in west Texas to deliver crude oil to markets in the Gulf coast.
Blueknight Energy Partners chief executive officer Mark Hurley said the deal will help the crude oil producers in the Permian Basin tohave access to new markets.
"This project provides our company a well-positioned platform to expand and extend our presence throughout this active region where demand is strong for safe and reliable ways to efficiently move crude to market," Hurley added.
Advantage Pipeline president Mike Shelton said, "The pipeline will be connected to the Longhorn Pipeline and will carry crude to terminals and refineries in the Gulf Coast area."
Construction of the pipeline is scheduled to begin soon and the phase I of the project is expected to become operational by the end of May 2013.
Under a long term agreement with Advantage Pipeline, BKEP will operate the pipeline.
