Oiltanking Partners Sold to Enterprise Products Partners
Oiltanking announced the sale of all of its interest in Oiltanking Partners L.P. (Oiltanking Partners) to Enterprise Products Partners L.P.
Oiltanking Partners, through its wholly owned subsidiaries, Oiltanking Houston and Oiltanking Beaumont, owns and operates tank storage assets located on the Houston Ship Channel and in Beaumont, Texas.
Oiltanking has a strong presence in the United States through its ownership and/or operation of terminals in Texas City and Port Neches, Texas and Joliet, Illinois.
The group said it plans to retain and grow other strategic assets in the United States, including the two dry bulk terminals of United Bulk Terminals in Davant, Louisiana and Corpus Christi, Texas 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 Enterprisem,” the company said in a statement.
Christian Flach, Managing Director of Oiltanking noted: “The sale of our interests in Oiltanking Partners reflects the outstanding entrepreneurial achievement of our U.S. 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 is the world’s second largest independent storage company for oils, chemicals and gases with 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.