Buckeye Partners is to acquire the remaining 20% stake in the Bahamas Oil Refining Company (BORCO) oil storage terminal from Vopak for $340 million (€246 million).
Buckeye acquired the majority stake in BORCO from private investment firm First Reserve for $1.36 billion (€1.02 billion) earlier this month, with Dutch firm Vopak announcing that it wished to exercise its right to sell its stake today (17 January).
BORCO is a 21.6 million barrel storage terminal for crude oil, fuel oil and multiple petroleum products. As well as storage, BORCO offers blending, trans-shipment and bunkering services. Its total capacity is 3.4 million m3.
Vopak expects to make an after tax profit of $150 million (€113 million) from the sale.
Buckeye is a publicly traded partnership that owns and operates one of the largest independent refined petroleum products pipeline systems in the US in terms of volumes delivered, with approximately 5,400 miles of pipeline.
The firm also owns 69 refined petroleum products terminals, operates and maintains approximately 2,400 miles of pipeline under agreements with oil and chemical companies, owns a major natural gas storage facility in northern California, and markets refined petroleum products in certain of the geographic areas served by its pipeline and terminal operations.