Panama to buy remaining private stake in Petroterminal pipeline company

The Panamanian government said Friday it would buy the remaining 41 percent private stake in Petroterminal from a US company, a move that would give Panama full control of a strategic oil pipeline.

The government said that once the transaction is completed, Panama will own 100 percent of Petroterminal, which it described as one of the country's most important strategic infrastructure assets.

The government did not give the value of the transaction. It said the acquisition would be funded with Petroterminal's own income and cash flows.

Economy and Finance Minister Felipe Chapman said the government's goal was for the infrastructure to create increasing value and greater benefits for Panamanians. He also said the acquisition was being carried out in strict accordance with the law.

Petroterminal was created in 1977 as a joint venture between Panama and the US company NIC Holding Corp. It was set up to store and distribute hydrocarbons that could not pass through the Panama Canal on their way to the east coast of the United States because of ship size limits.