Oil America, Inc.
Oil America, Inc. signed an agreement with Vopak Panama Atlantic, Inc. for a period of 5 years renewable, for fuel storage and related services in the oil terminal that Vopak develops at Bahía de las Minas, Province of Colon.
The agreement will allow Oil America to supply marine fuel and fuel oil on the Atlantic side, from which is undoubtedly the largest and most modern terminal currently planned in Panama, that will be operational in the third quarter of 2015.
These facilities will complement the availabilities that Oil America already has on the Pacific side, contracted with the Terminal at Taboguilla of the Company Decal Panama, allowing it to offer its customers a future fuel sales service both on the Pacific and Atlantic side of the Panama Canal.
By mentioned agreement Vopak will provide Oil America an initial storage capacity of 300-thousand barrels of Fuel Oil and Marine Diesel, with comprehensive infrastructure for docking, loading and unloading of tankers, with a maximum of 80-thousand MT and barges up to 10-thousand MT, as well as heating of the product, blending within tank and transfers from tank to tank. These services may be expanded through future agreements between the parties.
Vopak Panama is a national company whose parent company, Royal Vopak NV - based in Rotterdam - is worldwide the largest independent provider for storage and handling of liquid chemicals and petroleum fuels.
Royal Vopak has 400 years of experience and specializes in handling liquid chemicals, gases and petroleum products, operating 82 terminals in 31 countries, with a storage capacity of over 200 million barrels.
In June 2011, Chevron Corporation announced through its subsidiary in Panama, an agreement with Vopak Panama Atlantic, Inc., in order to optimize their operations at Bahía Las Minas and drive growth to mentioned facilities for storage and management of fuels.
The agreement provides for investment by Vopak in expanding facilities to increase the current storage capacity from 3 million to 14 million barrels. The agreed terms include Vopak to assume in early 2014 the operational control of the existing terminal, based on agreed upon standards and criteria that meet safety and reliability requirements, and agree that Vopak would build additional independent storage facilities at the site.
Vopak considers a phased project for the expansion. The first involves the development of 2.3-million barrels of storage and blending capabilities, mainly for a range of high sulfur fuel oils and marine oil. The second phase will consist of about 2-million barrels of storage and blending capabilities for high sulfur fuel oil, low sulfur fuel oil and marine diesel. In future phases, Vopak plans for three developments for a total of about 5.3-million barrels of storage with capabilities of handling and blending of derivatives of black and white oils.