US$30 million acquisition of Colon Oil and Colon Port Terminal
ARIAS, FABREGA & FABREGA acted as counsel to Oiltanking Colon,S.A. a privately owned independent oil storage company, in connection with the acquisition of 100% stake in Colon Port Terminal, S.A. (CPT) and Colon Oil and Services, S.A. (COASSA) for aproximately US$30 million. Both the companies are engaged in storage terminal business. The transaction included very sophisticated provisions relating to the possible future acquisition of rights over certain lands.
Following the transaction, both COASSA and CPT are renamed as Oiltanking Colon S.A. and will be managed and operated by Oiltanking. The aim of the terminal is to accommodate the increasing demand for marine fuels by vessels transiting the Panama Canal and calling the ports in the area.
The first phase of the terminal is currently under construction and will be commissioned in the third quarter of 2011. The terminal consists of 300,000 barrels of tank capacity for the storage and handling of marine fuels along with an exclusive 260 meter jetty with a draft of 12.5 meter and ability to receive PANAMAX vessels.
Oiltanking Colon, S.A. is a wholly owned subsidiary of Oiltanking, GmbH, the second largest independent tank storage provider for petroleum products, chemicals and gases world-wide. Oiltanking is a subsidiary of Marquard & Bahls AG, Germany, a leading petroleum company, privately owned.
CPT and COASSA are concessionaries of certain lands in the Coco Solo Port Area of the province of Colon, in Panama.