Oil-storage firm Buckeye Partners plans to pay $1.15 billion for part of Vitol’s international oil terminal business, the companies said Monday.
The transaction, slated to close in January, would give the Houston energy company 50-percent ownership of VTTI B.V., owned by oil-trading house Vitol, which is based in the Netherlands. Vitol’s 13 terminals hold roughly 54 million barrels of oil and other products made from oil.
Buckeye and Vitol said they’ll have the same number of directors on the jointly-owned company’s board. In a written statement, Buckeye CEO Clark Smith said the deal gives the company a springboard to “further attractive growth opportunities across the globe.”
He pointed to the marine terminals “strategic” locations in places such as Northwest Europe, the United Arab Emirates and Singapore.
The 120 petroleum products terminals Buckeye already owns hold some 110 million barrels.