Blackwater New Orleans, LLC announces that it has reached a commercial agreement with its existing international petroleum customer for the lease of four additional base oil storage tanks, totaling 20,000 barrels, to the customer’s existing system at the Westwego, Louisiana facility. The new agreement will bring the customer’s total system capacity to 64,000 barrels and is scheduled to commence in mid-November 2009.
Blackwater New Orleans, LLC completed the acquisition of NuStar Energy’s storage terminal in Westwego, Louisiana in December, 2008. Mike Suder, Blackwater Midstream Corp.’s Chief Executive Officer, stated, “It is an exciting time for Blackwater New Orleans, LLC. This additional base oil storage business, coupled with the additional 150,000 barrels of new tank capacity and new dock construction that is underway at our site, is a direct reflection of our commitment to continue increasing our value to our customers and shareholders.” Frank Marrocco, Chief Commercial Officer of Blackwater Midstream Corp., stated, “It is a great indication that we are meeting our key objective of providing value added services to our clients when we can continue to grow with our existing customers. We have made steady progress of increasing the utilization of our Westwego terminal from approximately 40% at the time of the acquisition to approximately 75%, in less than one year. We have accomplished this through our efforts to be an integral service provider to our customers and the product segments that they serve.”
