First Reserve Corporation Sells Equity Interest in Bahamas Oil Refining Company Oil Storage Terminal to Buckeye Partners, L.P.

First Reserve and Vopak, the world's largest tank terminal operator, acquired the BORCO oil storage terminal in Freeport, Bahamas, in April 2008 as a strategic joint venture. The equity of the company was split 80%/20% between affiliates of First Reserve Fund XI, L.P. 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," said 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% interest, BORCO is well positioned for future growth and continued success."
Raymond Jones, Managing Director of BORCO, said, "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."
BORCO is a 21.6 million barrel storage terminal for crude oil, fuel oil and multiple petroleum products inFreeport, Bahamas, just 80 miles east of the coast of Florida. In addition to storage, BORCO offers blending, trans-shipment and bunkering services. BORCO is the largest storage terminal in theCaribbean, and its deepwater jetty facilities can berth the largest-sized vessels.
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.