Buckeye Partners has signed an agreement to sell its 50% stake in VTTI, a global independent provider of energy storage, to Vitol and IFM for $975m.
Vitol Investment Partnership II Ltd (VIP), an investment vehicle sponsored and managed by Vitol, and IFM Investors (IFM) will buy the stake in VTTI.
Following the completion of the transaction, VTTI will be owned 50% by IFM and 50% by Vitol and VIP. An independent management team led by Rob Nijst, CEO, will continue to manage the company.
The transaction is expected to be completed by the end of the year.
Buckeye has also signed a definitive agreement to sell a package of non-integrated domestic pipeline and terminal assets for cash proceeds of $450m.
The assets include a jet fuel pipeline from Port Everglades, Florida to the Ft. Lauderdale and Miami, Florida airports; pipelines and terminal facilities serving the Reno, Nevada; San Diego, California and Memphis, Tennessee airports; and refined petroleum products terminals in Sacramento and Stockton, California.
Buckeye chairman, president and chief executive officer Clark Smith said: “We are now well positioned to fund our annual growth capital spend without accessing the public equity markets.
“In addition, the sales of our interest in VTTI and the domestic Asset Package allow us to reallocate available growth capital to higher return initiatives across our domestic assets, particularly the opportunities we are actively pursuing along the U.S. Gulf Coast.”
Recently, a consortium led Vitol has agreed to acquire a 50% stake in Petrobras Oil & Gas B.V. (POGBV) for $1.4bn.
POGBV is a joint venture in the Netherlands formed by Petrobras International Braspetro and BTG Pactual E&P with each holding a stake of 50%.
The company owns an indirect 8% interest in oil mining lease (OML) 127, which contains the producing Agbami Field, operated by affiliates of Chevron. Besides, it holds an indirect 16% interest in OML 130, operated by affiliates of Total, which contains the producing Akpo field and the Egina field.