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
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.