Tulsa-based SemGroup LP considers sale of SemLogistics

Journal Record, The (Oklahoma City), Oct 17, 2008 by Marie Price

Bankrupt SemGroup LP has announced it will evaluate offers to sell wholly owned subsidiary SemLogistics Milford Haven Ltd., on the west coast of Wales.

SemLogistics is not included in the Chapter 11 bankruptcy filing of SemGroup and 24 subsidiaries. Information from the company stated that SemLogistics operates the largest independent fuel storage facility in the United Kingdom, with an 8.5 million-barrel capacity.

SemLogistics serves markets in Europe, the eastern U.S. and Africa.

The parent company has invested more than $50 million in the facility since 2006, updating its tank infrastructure.

The facility has 52 above-ground tanks capable of storing a variety of petroleum products.

According to the company, permitting is in place to expand.

It also features a deep-water port and two jetties that can accommodate vessels up to 165,000 dead-weight tons, with access to rail and pipeline.

Hammered by $2.4 billion in losses from oil-futures trading, SemGroup filed for Chapter 11 protection July 22.

This week, former FBI Director Louis Freeh was appointed by a Delaware bankruptcy judge as examiner to investigate SemGroupLP's trading strategy, insider transactions, the possibly improper use of certain funds and assets to satisfy margin calls, and other issues.

Director of the FBI from 1993-2001, Freeh is founder and senior managing partner of the Freeh Group International, a Delaware-based consulting firm, and its affiliated law firm, Freeh Sporkin and Sullivan LLP.