Panama.- The Government of Panama reported this Wednesday that it acquired the entirety of an oil pipeline that extends between the Atlantic and Pacific coasts in the west of the country, by taking over the 41% of shares that were in private hands after paying 191.7 million dollars.
This is the company Petroterminal de Panamá, born as a joint venture, which extends 131 kilometers between Chiriquí Grande, on the Atlantic Ocean, and Puerto Armuelles, on the Pacific Ocean, and which transports about 10 million barrels of hydrocarbons monthly, according to its website.
“Hundreds of oil tankers unload and load more than 100 million barrels of crude oil per year to take it to markets in Asia and the west coast of the American continent,” says the company’s website.
Founded in late 1970, Petroterminal de Panamá S.A. is an initiative developed and managed by NIC Holding Corp., a company dedicated to the storage, distribution, and commercialization of hydrocarbons based in Melville, New York, United States, in partnership with the Republic of Panama, the institutional information adds.
In a statement, the Ministry of Economy and Finance maintained that the acquisition of the entire shareholding of Petroterminal de Panamá, S.A. is “a strategic decision to boost growth, generate employment, and create new opportunities, especially” in the western provinces of Chiriquí and Bocas del Toro.
“Along with the Panama Canal, this infrastructure represents one of the country’s great logistical advantages: a strategic route for the interoceanic transport of hydrocarbons, with significant potential to expand economic activities and strengthen Panama’s position in regional trade and logistics,” added the official letter.
The Panamanian government assured that after the nationalization, the pipeline operations will continue without interruption, under the current management contract, and the employees will remain in their respective positions, preserving the experience, knowledge, and capabilities developed over nearly five decades.
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“What changes is the ownership, not the way the operation is developed. Our commitment is to preserve and increase the built value, maintain operational excellence, and guarantee the highest standards of safety, reliability, and environmental responsibility, just as the country has achieved with the Canal,” declared the Minister of Economy and Finance, Felipe Chapman.
This acquisition constitutes the orderly exercise of a contractual right established in favor of the Republic of Panama since 1977 to acquire all of the shares of Petroterminal de Panama, S.A., the official information indicated.
