Buckeye meets with BORCO staff
The new parent company of the Bahamas Oil Refining Company(BORCO)was welcomed with open arms as the Buckeye Partners management team visited and officially met staff.
The welcome was marked by an official hoisting of the Buckeye Partners L.P. flag at the entrance of the BORCO facility. Present for the event were Forrest Wylie, chairman and CEO of Buckeye; Clark Smith, president and COO; and other Buckeye executives.
During a general staff meeting, the new owners outlined Buckeye’s history, strategy for growth, as well as why BORCO was an important part of Buckeye’s overall plan.
The executive team also answered questions from the BORCO staff and discussed the”bright future ahead”.
The$1.36 billion sale of BORCO was announced last December. Buckeye raised$650 million in a sale of senior secured notes to fund the purchase.
First Reserve and Vopak, the world’s largest tank terminal operator, acquired the Grand Bahama-based oil storage terminal in 2008. The equity of the company at the time was split 80:20 between affiliates of First Reserve Fund XI, L.P., a global private equity fund operated by First Reserve Corp., and Vopak.
Vopak then sold its 20 percent interest in the Grand Bahama-based company last month, which gave Buckeye 100 percent interest in BORCO.
The BORCO terminal is expected to expand its capacity to 27.4 million barrels, advancing the terminal’s position as a key international hub for crude oil and petroleum products storage in the oil industry, as well as a best-in-class storage and trading platform for the region. The cost of that expansion is estimated at$350 million.
Buckeye now owns 69 refined petroleum products terminals, and operates and maintains approximately 2,400 miles of pipeline under agreements with major oil and chemical companies. It also owns a major natural gas storage facility in northern California and markets refined petroleum products in some of the geographic areas served by its pipeline and terminal operations.