Panama has launched a buyout of the remaining 41% private stake in Petroterminal de Panamá, paving the way for full state ownership of the operator of the country’s trans-isthmian oil pipeline and terminals on both coasts, according to Panama’s Official Gazette.
Cabinet Decree No 9, approved on 16 July and published on 17 July, authorised the government to exercise its contractual right to acquire all shares held by non-state investors. Panama already owns 59% of the company.
The purchase option is contained in Petroterminal de Panamá’s association agreement, approved under Law 30 of 1977 and subsequently amended.
The company’s audited financial statements for 2025 were made available on 21 April, triggering a 90-day period for the government to exercise the option. That window expired on 20 July.
The price will be calculated under the formula set out in the association agreement, using Petroterminal de Panamá’s audited 2025 accounts and the total capitalised value per share.
The acquisition is expected to be funded from Petroterminal de Panamá’s income and cash flow, without money from the national treasury or additional public debt. Existing jobs, supplier contracts and customer services are expected to remain in place.
The Ministry of Economy and Finance is responsible for formally notifying the company and handling the next stages of the transaction.
Petroterminal de Panamá is a Panamanian corporation providing petroleum storage, transfer and transportation services. It operates a pipeline of about 131 km between Chiriquí Grande on the Atlantic coast and Charco Azul near Puerto Armuelles on the Pacific coast. Its two terminals have combined storage capacity of about 14.6m barrels.
US-based NIC Holding Corp, headquartered in Melville, New York, holds management and shareholder rights under the venture’s corporate structure. It succeeded Northville Industries Corp following amendments to the association agreement.
Northville Industries Corp is a US petroleum products company involved in the original development and management structure of Petroterminal de Panamá.