TrailStone buys USOR oil refinery in Washington

TrailStone, a global commodities logistics and trading company backed by Riverstone Holdings, announced Monday that it has acquired US Oil and Refining Co. (USOR). 

The acquisition marks TrailStone's entry into physical crude oil and refined products markets in North America, and will serve as the cornerstone of the company's growth strategy in liquids trading. 

The financial terms of the transaction were not disclosed.

"We are very excited about the acquisition of these assets," said John Redpath, head of oil and agriculture at TrailStone. "USOR is extremely well-positioned to capitalize on the rapidly changing dynamics of the North American oil market, and we look forward to working with Bob Redd and his team to build a leading liquids supply and trading franchise at TrailStone."

USOR is comprised of a 42,000-bpd refinery located in Tacoma, Washington, as well as several rail, pipe, marine and truck logistics systems in the Pacific Northwest. 

It controls:
  • 2.7 million bbl of storage capacity
  • A fleet of 630 rail cars
  • Multi-year storage and 30,000 bpd throughput agreement at a rail terminal in the Bakken
  • Deepwater terminal with two docks, capable of handling everything from barges up to 125,000-DWT vessels
  • 3 double-hulled barges on long-term charter
  • Dedicated proprietary jet fuel pipeline to Joint Base Lewis-McChord
  • State of the art truck loading racks for wholesale clean product and asphalt sales
In connection with the acquisition, the USOR executive team, including CEO Robert B. Redd, have joined TrailStone to help execute the business plan in the coming years. 

"TrailStone endeavors to be a leading global asset-backed, logistics and trading company," said CEO David Silbert. "This transaction represents a significant advancement to that end."

Deutsche Bank Securities acted as financial advisor to USOR.

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