$40m BORCO expansion underway – Nassau Guardian
02 June 2011
A $40 million expansion is underway at the Bahamas Oil Refining
Company (BORCO), with a New York Stock Exchange-listed company
contracted for the construction of 14 oil storage tanks, set for
completion in the second quarter of 2012.
The project is expected to kickoff in short order, say
officials, with a team of US-based CB&I officials set to fly in
for the work, valued at $40 million.
"CB&I's scope of work includes the engineering, procurement,
fabrication and construction of 14 oil storage tanks, with a total
capacity of approximately 3.5 million barrels, in Freeport, Grand
Bahamas," said a statement from BORCO yesterday. "CB&I's
contract is scheduled for completion in the second quarter of
The contract was awarded in the last two weeks, said a
representative from CB&I. A statement from the company noted
that CB&I has constructed some of the world's largest energy
infrastructure projects. The hiring of the firm is the latest step
by BORCO, following the welcoming of its new parent company Buckeye
The new owners have outlined Buckeye's history, strategy for
growth, as well as why BORCO is an important part of Buckeye's
The $1.36 billion sale of BORCO was announced last December.
Buckeye raised $650 million in a sale of senior secured notes to
fund the purchase.
First Reserve and Vopak, the world's largest tank terminal
operator, acquired the Grand Bahama-based oil storage terminal in
2008. The equity of the company at the time was split 80:20 between
affiliates of First Reserve Fund XI, L.P., a global private equity
fund operated by First Reserve Corp., and Vopak. Vopak then sold
its 20 percent interest in the Grand Bahama-based company last
month, which gave Buckeye 100 percent interest in BORCO.
The BORCO terminal is expected to expand its capacity to 27.4
million barrels, advancing the terminal's position as a key
international hub for crude oil and petroleum products storage in
the oil industry, as well as a best-in-class storage and trading
platform for the region. The cost of that expansion is estimated at
Buckeye now owns 69 refined petroleum products terminals, and
operates and maintains approximately 2,400 miles of pipeline under
agreements with major oil and chemical companies. It also owns a
major natural gas storage facility in northern California and
markets refined petroleum products in some of the geographic areas
served by its pipeline and terminal operations.
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