Oiltanking announced on October 1 that it is selling its interest in Oiltanking Partners LP to Enterprise Products Partners LP. Oiltanking Partners, through its wholly owned subsidiaries, Oiltanking Houston and Oiltanking Beaumont, owns and operates tank storage assets located on the Houston (TX) Ship Channel and in Beaumont TX.
Oiltanking is maintaining a strong presence in the United States through its ownership and/or operation of terminals in Texas City TX, Port Neches TX, and Joliet IL. In addition, the group will continue to retain and grow other strategic assets in the United States, including the two dry bulk terminals of United Bulk Terminals in Davant LA and Corpus Christi TX as well as Newsco International Energy Services and Bomin.
The sales price was partly paid in cash and partly in Enterprise common units. All affected employees of Oiltanking will have the opportunity to continue their employment with Enterprise.
Christian Flach, managing director of Oiltanking, said: “The sale of our interests in Oiltanking Partners reflects the outstanding entrepreneurial achievement of our US team in the past decades as well as the potential of the shale oil and gas boom. While we never had the intention to sell these assets, we did accept the Enterprise offer because we were fully convinced that this is an extraordinary opportunity for us. Importantly, the after-tax cash proceeds of the transaction will remain in our group to further strengthen our solid financial position and to significantly foster our long-term growth, both in the United States and internationally.”
Oiltanking has been providing Enterprise with a variety of services in the Gulf Coast for over 30 years and will continue the long-term relationship as an Enterprise unit holder. This transaction will strengthen Enterprise’s position as a leading midstream energy company in North America, and enhances its ability to capitalize on the ongoing renaissance in the United States energy industry. Furthermore, it will provide customers with enhanced services and superior connectivity to domestic and international export markets for a variety of petroleum products.
Oiltanking will remain the world’s second largest independent storage company for oils, chemicals and gases with 72 terminals in 23 countries and will continue to provide customers with flexible, safe and efficient services.
Oiltanking is the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide. The company owns and operates 72 terminals in 23 countries within Europe, North and South America, Middle East, India as well as Asia. Oiltanking has an overall storage capacity of 19.2 million cubic meters.