Petroplus Forms JV With Blackstone, First Reserve

NEW YORK CITY-Zug, Switzerland-based Petroplus Holdings AG has entered into a partnership with locally based Blackstone Group and First Reserve to pursue acquisitions of crude oil refineries in the US. Each partner has committed $667 million in equity to this venture.

PBF will assemble a small group of highly experienced professionals in the US to examine potential opportunities. Thomas O’Malley, chairman of Petroplus, will act as the CEO of the partnership.

O’Malley says in a prepared statement that “there are interesting opportunities in the US, and Petroplus’s Board of Directors is extremely pleased that we were able to assemble partners with two outstanding organizations, both of whom are familiar with the refining and energy business and bring to the partnership extraordinary talents and financial support. This investment vehicle gives Petroplus accretive expansion opportunities, without the need to significantly lever up the balance sheet or issue equity to support a US growth vehicle.” O’Malley continues that “this initiative opens up a new geographic area of growth for Petroplus and should allow for Petroplus to add to earnings per share and free cash flows without distraction from its current operations.”