Buckeye Partners, L.P. (BPL)

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Reuters: PDVSA nixes Buckeye Partners contract, leaves Bahamas oil terminal

Venezuela's state-run oil company PDVSA is moving millions of barrels of oil from a Bahamas oil storage facility after terminating a contract with U.S. owner Buckeye Partners (BPL -0.2%), Reuters reports.

BPL and PDVSA had tried to resolve payment delays and other problems that stalled some shipments, but PDVSA decided to shift its oil to the Statia terminal, operated by NuStar Energy (NS +1.1%), at the neighboring St. Eustatius island, according to the report.

PDVSA's contract with BPL reportedly included storage for up to 6M barrels of crude and fuel oil and was due to expire in December, but PDVSA decided to end the lease in advance.

Reuters says BPL had intermittently suspended PDVSA from moving its stored oil out of the Bahamas terminal - the Caribbean's largest - since last year over monthly payment delays.