NuStar Energy has finalised the sale of its oil storage terminal on the island of Saint Eustatius to Prostar Capital for $250 million.

The acquisition was first announced in May 2019 with NuStar and Prostar signing a definitive stock purchase agreement.

NuStar president and chief executive Brad Barron, said: "Selling the Caribbean terminal at an attractive multiple allows us to re-deploy the sales proceeds to continue to lower our leverage and to fund growth projects in our core North American business, further allowing us to focus our resources on building on our core asset base, as well as continuing to strengthen our financial metrics to generate stable, consistent growth for our unit holders.”

Barron added: "It was a difficult decision to divest the terminal given that it is such a high-quality asset with outstanding employees, but it had become increasingly clear that a different business model was needed to ensure the long-term success of the facility and that the best path forward for its success and NuStar's success was to sell the terminal to an entity that can take advantage of the changing global crude trade flow patterns.”

The terminal has 56 tanks with a storage capacity of 14 million barrels. It is directed to crude oil, distillates, gasoline, jet fuels, intermediate petroleum products and blend components, residual fuels, marine lubricants and condensates.

Saint Eustatius has six mooring locations servicing vessels up to 520,000 DWT, the world’s largest oil tankers.

While Saint Eustatius is an island in the Caribbean, the territory is a special municipality of the Netherlands, located just north of St Kitts and Nevis.