Americas News
World Fuel Services Sells Interest In Crude Oil Joint Ventures
Petroleum Transport Solutions, LLC, a subsidiary of Miami-based World Fuel Services Corporation (WFS), has sold its crude oil joint venture interests, WFS announced.
"Despite exiting these joint ventures, we will continue to offer tailored solutions to producers and consumers in the growing North American crude oil marketplace," said WFS CEO Michael J. Kasbar.
According to the company, the sale includes the Pioneer Terminal in North Dakota, which was sold to its joint venture partner for a base price of $43 million.
In addition, the company will receive contingent payments of $0.225 per barrel of crude oil received at the terminal, up to a limit of 80,000 barrels per day through to December 2026.
WFS said that the the deal would also bring a one-time after-tax gain of approximately $11 million.
The price of crude oil has crashed spectacularly in recent months, having fallen to five-year lows as of last week due to oversupply in the industry.
Prices, which had been steadily declining since September, took another nosedive after the Organization of the Petroleum Exporting Countries (OPEC) announced that it would be taking no action to curttail supply by maintaining its production ceiling of 30 million barrels.
