Panama aims to buy the remaining 41% stake in Petroterminal, achieving full state control over its oil pipeline and terminals, reports AFP.
Panama has moved to acquire the remaining 41 per cent private stake in Petroterminal de Panama, paving the way for full state ownership of the operator of the country's trans-isthmian oil pipeline and dual-coast terminals, reported Agence France-Presse.
Cabinet Decree No 9, approved on 16 July and published the following day, authorized the government to exercise its contractual right to purchase all shares held by non-state investors. Panama already owns 59 per cent of the company.
The option is contained in the association agreement approved under Law 30 of 1977 and later amended. The audited 2025 financial statements released on 21 April triggered a 90-day window for the government to act, which expired on 20 July.
The price will be calculated under the formula set out in the agreement, using audited accounts and capitalized value per share. The acquisition is expected to be funded from Petroterminal's income and cash flow, without treasury funds or new public debt.
Existing jobs, supplier contracts, and customer services are expected to remain unchanged. The Ministry of Economy and Finance will formally notify the company and oversee the next stages of the transaction.
Petroterminal de Panama operates a 131-km pipeline between Chiriqui Grande on the Atlantic and Charco Azul near Puerto Armuelles on the Pacific. Its two terminals have a combined storage capacity of about 14.6 million barrels.
US-based NIC Holding Corp, headquartered in Melville, New York, holds management and shareholder rights under the corporate structure. It succeeded Northville Industries Corp, which was involved in the original development and management of the venture.
