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NuStar expands into Turkey
Originally published:  01/03/2011
NuStar Energy last month closed a deal to set up a joint venture with two Turkish companies, giving it majority ownership and operational control of two petroleum terminals in Turkey. NuStar is paying some $54m for a 75 per cent share in the venture.
The partners in the joint venture are now planning to expand the combined storage capacity of the two terminals by some 930,000 bbl (148,000 m3) by the end of this year. They are also said to be evaluating new terminal construction projects elsewhere in Turkey.
“We are fortunate to have such outstanding partners as S-Oil and Aves in this endeavour and we look forward to working with them to develop world-class operations in Turkey,” says Curt Anastasio, president and CEO of NuStar. “These are new, well built and well run facilities with outstanding employees and we will invest to expand and optimise operations to enhance profitability.”
“By making new investments we intend to cover the oil storage capacity gap in Turkey that is the result of ever-increasing domestic demand for oil products and the country’s obligation to comply with IEA strategic stock-keeping policies,” says Senan Idin, chairman of Aves. “We also continue to believe that the partnership is an important stepping stone for reaching Turkey’s long-term goal to become an energy corridor country as it is key for the transport of Iraqi, Russian and FSU countries’ tremendous oil and natural gas resources,” he adds.
The two terminals involved are both in Mersin. S-Oil has brought its 20-tank, 606,000-bbl (96,350 m3) gasoil and distillates terminal to the joint venture. Also included is the 740,000-bbl (117,700 m3) oil products terminal opened in the port by Aves in August 2010. Both terminals receive product from tankers of up to 80,000 dwt via the new SAVKA offshore platform located some three miles off the coast. They both discharge via truck racks for distribution to the local market or via the platform for re-export.