Americas News
Buckeye Buying Hess Terminal Network for $850M
Buckeye Partners LP [NSYE:BPL] (Buckeye) is buying Hess Corp. [NYSE:HESS] (Hess)'s storage terminal network on the U.S. East Coast and St. Lucia for $850 million, Reuters reports.
Buckeye, which already owns more than 5.6 million barrels of storage facilities on the East Coast and is the parent company of Bahamas Oil Refining Company International Limited (BORCO), will gain 20 liquid petroleum products terminals with a capacity of about 39 million barrels.
The sale includes a 10-million-barrel terminal in Santa Lucia, and the rest of the facilities are on the East Coast.
Hess is one of the biggest oil producers involved in the Bakken shale formation in North Dakota and has been moving toward becoming a pure play exploration and production company, exiting other businesses.
Buckeye saw a big jump in profits in the second quarter of 2013, which it attributed partly to increased volumes in its domestic pipeline and terminal systems.
The BORCO subsidiary, which has been increasing its capacity, has come under fire over oil spills in the Bahamas.
