Equinor has entered into a sale agreement with Liwathon for the sale of the South Riding Point oil terminal located on Grand Bahama Island in the Bahamas. The terminal was purchased by Equinor in 2009 to allow the company to trade primarily petroleum products from U.S. markets.
A changing market
Since then, the North American oil market has changed considerably for Equinor, which has increasingly sold crude oil in other regions of the world. “As a result, we believe a new owner would be better positioned for further development of the terminal,” says Alex Grant, Equinor’s senior vice president for petroleum products. “This transaction supports our strategy of focusing the portfolio on key areas and allows us to redeploy capital where we have a stronger competitive advantage.”
Liwathon takes over the terminal
Liwathon will now take over the ownership and operation of the terminal. The group is currently present in Estonia with four facilities with a storage capacity of over one million cubic meters. Liwathon provides a wide range of services in the field of handling, transportation and storage of liquid fuels traded on a global scale.
The transaction is approved by the Bahamian authorities and commercial details will not be disclosed. Liwathon will assume responsibility for South Riding Point employees.
An old and damaged terminal
The South Riding Point terminal, commissioned in 1973, has a total storage capacity of 6.8 million barrels. In September 2019, the terminal took a direct hit from Hurricane Dorian, a severe category five hurricane, causing significant damage, including an oil spill that affected the terminal site and a forested area to the northeast. Since then, Equinor has carried out extensive cleanup work in close cooperation with the Bahamian authorities. Cleanup operations outside the fence were completed in March 2021, and extensive testing of groundwater outside the terminal showed no evidence of hydrocarbon deposition.
This sale of the oil terminal is an important step for Equinor, which can now focus on its core areas while allowing Liwathon to take over the future development of the terminal.
