FOR IMMEDIATE RELEASE

STATIA  TERMINALS  GROUP N.V. TO SELL  SUBSIDIARIES TO KANEB PIPE LINE PARTNERS;
PUBLIC SHAREHOLDERS TO RECEIVE $18 PER SHARE

     TUMBLEDOWN DICK BAY, ST.  EUSTATIUS,  N.A.. . . November 13, 2001 . . . . .
Marine terminal operator Statia Terminals Group N.V. ("Statia" or the "Company")
(Nasdaq:  STNV) announced today that it has entered into a definitive  agreement
under which Kaneb Pipe Line Partners,  L.P. (NYSE:KPP) will acquire the stock of
Statia's three subsidiaries,  including Statia Terminals International N.V., for
a purchase price of approximately $307 million, including estimated cash on hand
and the assumption of approximately $107 million of Statia debt.

     The shareholders of Statia, a Netherlands  Antilles company,  will be asked
to approve the sale of the subsidiaries  (which constitute  substantially all of
the  assets  of  Statia),   an  amendment  to  the  articles  of   incorporation
implementing  a  distribution  mechanism  for the proceeds of the sale,  and the
subsequent   liquidation  of  the  Company,  at  an  extraordinary   meeting  of
shareholders to be held as soon as permissible.

     After  giving  effect  to  the  proposed   amendment  to  the  articles  of
incorporation,  the class A shareholders will receive, in the aggregate,  $108.2
million,  or $18.00 per class A share in the transaction,  a premium of 39.5% to
the closing  price of Statia class A shares on November 12, 2001.  Approximately
6.01 million class A shares are currently outstanding.  Holder's of Statia's 3.8
million class B shares will receive, in the aggregate,  $62.3 million, or $16.40
per class B share, and holders of Statia's 38,000 class C shares are expected to
receive, in the aggregate,  approximately $8.1 million. In addition,  holders of
options to purchase  class A shares will be paid an aggregate  of $13.9  million
out of the sale proceeds in consideration for the surrender of such options.

     The  transaction  was  approved  unanimously  by the Board of  Directors of
Statia,  which also  unanimously  resolved to recommend  that the holders of its
class A and class B shares amend the articles of incorporation, approve the sale
of the subsidiaries and approve the liquidation of the Company. Statia Terminals
Holdings  N.V.  has  granted  Kaneb  an  irrevocable  commitment  to vote  their
approximately  39%  ownership  stake in  Statia  in  favor  of the  transaction,
assuming the class A shareholders  approve the amendment to Statia's articles in
a separate class vote. The transaction is expected to close in the first quarter
of 2002.

     James G. Cameron,  President and Chief Executive Officer of Statia,  stated
"This is a very  attractive  transaction  for our public  shareholders,  for our
dedicated employees and for our customers.  Kaneb is a world-class organization,
and we can look forward to a future with them that holds great promise."

     "The sale of Statia to Kaneb  reflects  the  considerable  progress we have
made in recent  years and  offers our  shareholders  an  opportunity  to receive
premium  value for their  shares.  Statia  today is one of the  world's  leading
independent  marine  terminaling   companies  with  world-class  assets,  strong
financial results and a solid balance sheet.  These achievements are a credit to
our people,  who have  consistently  demonstrated  the experience and commitment
necessary  to  capitalize  on the  potential  of our assets.  I look  forward to
working  with  the  Kaneb  management  team to  complete  this  transaction  and
successfully integrate our two companies."

     In  addition  to  shareholder  approval,  the  transaction  is  subject  to
regulatory  approvals and other  customary  conditions.  Statia  expects to mail
definitive proxy materials to its shareholders in the near future.

     Merrill  Lynch & Co.  served as  financial  advisor to Statia and  Houlihan
Lokey Howard & Zukin opined on the  fairness of the  transaction  to the class A
shareholders of Statia.

     Statia provides storage, blending, processing, and other marine terminaling
services  for crude oil,  refined  products  and other bulk liquids to crude oil
producers, integrated oil companies, traders, refiners, petrochemical companies,
and others at its facilities located on the island of St. Eustatius, Netherlands
Antilles,  and at Point Tupper, Nova Scotia,  Canada. The Company's  facilities,
with their deep-water  ports, can accommodate  substantially  all of the world's
largest oil tankers. In connection with its terminaling activities,  Statia also
provides  value-added  services,  including delivery of bunker fuels to vessels,
other petroleum product sales,  emergency and spill response services,  and ship
services.

Note on Forward-Looking Statements

     This  announcement  contains  certain  statements that are neither reported
financial  results  nor  other  historical  information.  These  statements  are
forward-looking  statements within the meaning of the safe-harbor  provisions of
the US federal securities laws. These forward-looking  statements are subject to
risks and  uncertainties  that could cause actual  results to differ  materially
from those expressed in the forward-looking  statements. Many of these risks and
uncertainties   relate  to  factors  that  are  beyond  the  Company's  and  its
subsidiaries'  ability to control or estimate  precisely,  such as future market
conditions,  the  behavior  of other  market  participants  and the  actions  of
governmental  regulators.  These and other  risk  factors  are  detailed  in the
companies  SEC reports.  Readers are  cautioned  not to place undue  reliance on
these forward-looking statements,  which speak only as of the date of this press
release.  The Company and its  subsidiaries  do not undertake any  obligation to
publicly  release any revisions to these  forward-looking  statements to reflect
events or circumstances after the date of this press release.

     This announcement is not a solicitation of proxies in favor of the proposed
transaction,  nor is it an offer to purchase or a solicitation of offers to sell
shares of Statia. At the time the solicitation is commenced,  Statia will file a
proxy  statement  with  the  SEC  with  respect  to  such  solicitation.  Statia
shareholders  are advised to carefully  read the proxy  statement  which will be
filed with the SEC. The proxy statement will contain important information which
should be read carefully before any decision is made with respect to the matters
to be presented to  shareholders.  The proxy statement will be made available to
all shareholders of Statia,  at no expense to them and will also be available at
no charge at the SEC's website at www.sec.gov.



Contact:

Statia Terminals Group N.V.,
Thomas M. Thompson, Jr.
954/698-0705
Email: info@statiaterm.com


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