Investment firm First Reserve has sold its 80 per cent equity interest in the Bahamas Oil Refining Company oil storage terminal to Buckeye Partners for USD1.36bn.
First Reserve and Vopak, the tank terminal operator, acquired the Borco oil storage terminal in Freeport, Bahamas, in April 2008 as a joint venture.
The equity of the company was split 80 per cent/20 per cent between affiliates of First Reserve Fund XI and Royal Vopak, respectively.
Full terms of the transaction were not disclosed.
“Our investment in Borco has provided significant value for our strategic partners and investors. During our three-year investment period, we have worked with Vopak to make significant upgrades to the facility’s infrastructure, diversified Borco’s product offerings, and have worked with the management team to create an operating center of excellence,” says Tim Day, managing director at First Reserve. “The terminal is now a strategic hub for some of the world’s major oil companies and provides them with superior facilities for storage and distribution services. Vopak has been a great partner and with Buckeye’s acquisition of our 80 per cent interest, Borco is well positioned for future growth and continued success.”
Raymond Jones, managing director of Borco, says: “Buckeye is a welcomed investor that will provide long-term support for the tremendous infrastructure improvements and expansion achieved to date. The infusion of capital, along with Vopak’s continued interest, will enable Borco to progress through its next phase of growth and which will provide additional economic benefits to the Bahamas and the region.”
The transaction is expected to close in January of 2011 and is contingent upon the receipt of satisfactory regulatory approvals from the Government of the Bahamas.
