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Bahamas Oil Refining Company (BORCO) has awarded a storage tank project to Netherlands-headquartered Chicago Bridge & Iron Company N.V. (CB&I) - one of the world’s leading engineering, procurement and construction companies.

The scope of the project, which is valued in in excess of US$40 million, includes the engineering, procurement, fabrication and construction of 14 oil storage tanks, with a total capacity of approximately 3.5 million barrels, in Freeport, Grand Bahamas.

CB&I's contract is scheduled for completion in the second quarter of 2012.

Bahamas Oil Refining Company (BORCO) is wholly owned by Buckeye Partners, L.P., which in February took its sharehoding to 100 percent after acquiring Vopak's 20 percent share in LFR Borco Coop Holdings, L.P., the indirect owner of BORCO, for US$340 million. In January Buckeye had purchased an 80 percent share in BORCO from First Reserve Corporation for $1.36 billion.

In March, Buckeye said that it was planning to upgrade the BORCO storage complex to include the construction of up to 7.5 million barrels of flexible petroleum product storage, thus increasing the current storage to more than 29 million barrels.

Buckeye had also said that the expansion project would cost between US$200 million and US$400 million to upgrade the Grand Bahama-based storage terminal.

At present there are three deepwater jetties on the site which range from 13-30 metres in size. In an announcement earlier this year Buckeye said the site would be left with eight berths to be used as access points to the storage facilities. These berths would be able to handle 20,000dwt to 500,000dwt, including both VLCCs and ULCCs.