Prostar Capital has acquired an oil storage terminal facility on Saint Eustatius from NuStar Capital for $250 million.
The terminal on Saint Eustatius, in the Caribbean, comprises 60 commercial tanks and associated deep water jetties and pipelines, with a total storage capacity of 2.3 million m3. Being conveniently located in the Caribbean, it serves key trading countries.
Steve Bickerton, senior managing director of Prostar, says: ‘We are excited to be acquiring a high-quality terminal facility with many key strategic advantages, including a location at the crossroads of global and regional oil trade, long-term customer relationships with major global oil traders, a strong local operations team, and a highly flexible infrastructure that allows for capacity expansion as growth opportunities arise.’
‘The acquisition of the Saint Eustatius Terminal is consistent with Prostar’s sharply defined approach to creating value by acquiring, managing and improving the performance of middle market assets that are positioned to benefit from the global demand for energy,’ adds Dave Noakes, senior managing director of Prostar.
Brad Barron, president and CEO of NuStar Energy, adds: ‘It has become increasingly clear in recent months that the facility requires a new business model to ensure its long-term success and that NuStar’s best path forward is to sell the terminal to a buyer that is well-positioned to take advantage of the changing global crude oil trade flow patterns.’
‘We are pleased that this sale allows us to re-deploy the sales proceeds here at home to continue to improve our financial metrics and fund our growth projects for our core business in North America. And we are very gratified to hand over the reins to purchasers with a business model that ensures a bright future for the facility and our employees there.’