Buckeye Partners acquires Trafigura AG’s Texas holdings

Houston-based Buckeye Partners has purchased 80 percent of Trafigura AG's interest in Corpus Christi for $860 million. Trafigura, a subsidiary of Singapore-based commodities giant Trafigura Beheer B.V, will maintain 20 percent interest and commercial rights to use assets, according to the Corpus Christi Caller Times.

Major assets involved in the deal include the following:

  • Texas Dock and Rail: a deep-water marine terminal in the Corpus Christi Ship Channel
  • Trafigura Field Services: an Eagle Ford shale crude facility
  • EF90: a liquefied petroleum storage complex with a 50,000-barrel condensate splitter

"We're still very dedicated to the South Texas market," Marisol Espinosa, senior manager of media relations for Trafigura's Americas operations told the Caller Times. "This transaction demonstrates the value of our infrastructure investments there."

Clark C. Smith, Chairman and Chief Executive Officer of Buckeye Partners, wrote in a release that the deal will allow his organization to capitalize on the productive Eagle Ford shale zone, as well as complement their existing marine terminal assets at the Texas hub. 

If federal regulators relax their current export ban on crude as many industry analysts predict, the organization will be in a prime position. Smith's release also stated that his organization plans to invest about $240-$270 million through the first quarter of 2016 in their new holdings. 

This latest move continues a significant trend of mergers and acquisitions in the Texas energy industry. With any period of transition, organizations need to seek change management consulting to ensure that their workforce is aware of any changes in process and how their role will be affected by the change. Oil and gas management consulting requires proven expertise, as even in boom times, organizations can expose themselves to unnecessary risk by ignoring change management best practices.