Equinor is selling its South Riding Point oil terminal in Grand Bahama and has entered into an agreement with European liquid fuels terminal operator Liwathon for the purchase of the terminal.

Alex Grant, Equinor's senior vice president for crude, products and liquids, said in a press statement yesterday that the decision was made due to changes in the flow of the oil market in North America.

"Since we bought the South Riding Point terminal in 2009, the flow in the oil market in North America has changed significantly for Equinor, and the company has increasingly sold crude to other regions globally," said Grant.

"Consequently, we believe a new owner would be better positioned for the further development of the terminal.

"This transaction supports our strategy to focus and concentrate the portfolio around core areas, and allows us to redeploy capital where we believe we have a stronger competitive advantage.

"Liwathon will now take over ownership and commence a process to restart regular operations of the South Riding Point terminal."

The terminal was badly damaged by Hurricane Dorian in 2019. The storm destroyed the tops of some of its oil storage containers and spread oil into the forest area at the perimeter of the facility, as well as within the facility.

The company engaged in an extensive clean-up process in the aftermath of the storm, urged on by environmentalists and the government.

"In September 2019, the South Riding Point terminal was in the direct path of Dorian, a violent Category 5 hurricane, and sustained extensive damage, including an oil spill which affected the terminal site and a forest area northeast of the terminal," the statement said.

"Since then, extensive clean-up operations have been performed by Equinor in close collaboration with Bahamian authorities. The clean-up operations outside the fence were concluded in March 2021, and extensive testing of the groundwater outside the terminal has shown no sign of hydrocarbon deposits."

Equinor said in its statement that Liwathon will now have responsibility for the employees of South Riding Point, adding that Bahamian authorities have approved the sale.

The statement said the company would not reveal anymore details related to the deal struck between Equinor and Liwathon.

The statement said of the purchasing company: "Liwathon Group is an integrated logistics and investment business. The company currently operates four facilities in Estonia with a storage capacity of over one million m3 (cubic meters). The company provides an extensive range of services in the area of handling, transport and storage of liquid fuels traded globally."

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