Panama Aims to Nationalize Oil Transport Company Petroterminal

The Panamanian government has initiated the process to fully nationalize Petroterminal, the company managing a vital oil pipeline in the country's northwest. This move involves acquiring the remaining 41% of the company's private shares, a step aimed at consolidating national control over a critical piece of infrastructure.

Minister of Economy and Finance Felipe Chapman stated that the objective is for this strategic infrastructure to generate increasing value and benefits for all Panamanians. Upon completion of the transaction, Panama will hold 100% ownership of Petroterminal de Panamá, S.A. (PTP), reinforcing its command over a key platform for the nation's logistical and energy development.

Petroterminal, established in 1981 through an agreement between Panama and the U.S. company Northville Industries, operates a 130-kilometer pipeline. This pipeline facilitates the monthly transport of approximately 10 million barrels of crude oil. It connects a terminal in Chiriquí Grande on the Atlantic coast to another in Puerto Armuelles on the Pacific, enabling hundreds of oil tankers to load and unload over 100 million barrels annually for markets in Asia and the Americas.

Financing for the acquisition will be sourced entirely from Petroterminal's existing revenues and cash flows. The government emphasized that this operation will not require funds from the National Treasury, incur public debt, or affect the financing of social programs or government investments. Panama is also advancing other infrastructure projects, including a cargo and passenger train to the Costa Rican border, port developments, and a gas pipeline near the Panama Canal.