Related Articles
Forward article link
Share PDF with colleagues

Hovensa enters deal after filing for bankruptcy

The oil storage facility in the US Virgin Islands, a sought after site in the oil storage trade, could be back up and running soon after agreeing deal with Limetree Bay Holdings

The plant's owners Hess and Venezuela's PdV have agreed to sell Hovensa to Limetree Bay Holdings, backed by private equity firm ArcLight capital, for $190m, according to bankruptcy court documents. Limetree, in turn, has agreed to lease 10m of the plant's 13m barrels of operational oil storage capacity to China's Sinopec, and a further 2m barrels of storage to commodity trader Freepoint for 10 years. The deal, which still needs to be approved by the US Virgin Islands legislature, brings an end in sight to a long-running and bitter dispute between Hess and the local government over the future of the facility. As part of the agreement, Hess, PdV and the government have agreed to drop all out

Also in this section
Rosneft makeover 'on the way'
17 July 2018
Chief executive Igor Sechin has outlined bold reforms for Russia's largest oil company, but will they be put into practice?
Brazil's floating future
5 July 2018
The resignation of Petrobras’ boss comes just as it begins to reap the benefits of his reform programme
Petrobras' incomplete recovery
4 July 2018
Brazil's state oil company has taken major strides forward, but further progress and support from the next government are needed