NEW YORK Oct 9 Hess Corp plans to sell
its East Coast and St. Lucia storage terminal network to Buckeye
Partners LP for $850 million as the U.S. oil and gas
company reshapes its sprawling energy business to focus on
exploration and production.
Buckeye will acquire 20 liquid petroleum products terminals
with total storage capacity of about 39 million barrels, the
companies said in statements on Wednesday.
All of the terminals are located along the U.S. East Coast,
except for Hess' Santa Lucia terminal in the Caribbean, which
has a capacity of about 10 million barrels of crude oil and
refined petroleum products.
Along the East Coast, Buckeye currently owns over 4 million
barrels of storage in New York, nearly 1.6 million barrels in
Pennsylvania, as well as smaller facilities in Florida,
Massachusetts, Maine and Virginia. The company also owns several
product pipelines in the Northeast.
Hess, which is one of the largest oil producers in North
Dakota's Bakken shale play, has been selling off assets due in
part to efforts by activist investor Elliott Management's to
shake up the company. The company said it has sold assets worth
$5.4 billion so far this year.
In February, it shut its 70,000 barrel per day Port Reading
refinery due to poor margins, and has sought to sell its retail
and trading arm Hetco.
The terminal sale, which will free up around $900 million of
working capital, did not include a storage terminal on St. Croix
owned by Hess' Hovensa refining joint venture with Petroleos de
Since Elliott began making its case for change in January,
Hess announced plans to become a pure play exploration and
production (E&P) company by selling or exiting a number of
businesses, put eight new independent directors on the company's
board and stripped longtime chief executive John Hess of his
role as chairman.