By DAVID WETHE
HOUSTON (Bloomberg) -- Hess Corp., the oil company that settled a proxy fight with Paul Singers Elliott Management earlier this year, agreed to sell terminals on the US East Coast and in St. Lucia to Buckeye Partners for $850 million in cash.
The purchase includes 20 terminals that can hold a total of 39 MMbbl of petroleum products, Buckeye Partners said in a statement. The transaction includes a multiyear commitment from Hess for storage and throughput on the network.
Buckeye Partners already owns 100 terminals with more than 70 MMbbl of aggregate storage capacity and about 10,000 km of pipelines that move petroleum products. The company said the purchase will expand its marine terminal business, with all but two of the Hess facilities at ports and 12 having deepwater access.
Our integrated network of marine terminals should allow us to capture meaningful synergies from global logistic product flows, CEO Clark C. Smith said in the statement. Along with expansions in the Southeast and the potential to accommodate more Latin American production, the transaction provides the opportunity to create a large, integrated network in New York Harbor, he said.