2008-04-07 23:55:46 -

www.nustarenergy.com - NuStar Energy L.P. (NYSE:NS) announced today that it has closed the exercise of the option granted to the underwriters to purchase additional common units in connection with its recent public offering of 4,450,000 common units, which closed on April 2, 2008. The underwriters exercised their option to purchase an additional 600,800 common units at a

price to the public of $48.75 per unit. The exercise price for the additional common units is the same as the price at which the 4,450,000 common units were sold to the underwriters.

Total net proceeds from the sale of 5,050,800 common units in the equity offering are approximately $236.3 million, including the additional common units sold. The net proceeds were used to repay in full NuStar's $124 million term credit facility and a portion of the borrowings outstanding under NuStar's revolving credit facility.

Goldman, Sachs & Co. and Wachovia Capital Markets, LLC acted as joint book-running managers. Acting as co-managers for the offering were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., Morgan Stanley & Co. Incorporated and UBS Securities LLC.

The securities have been issued pursuant to an effective registration statement filed with the Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

A copy of the final prospectus supplement and prospectus relating to this offering may be obtained from Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, New York 10004, fax: 212-902-9316 or email: prospectus-ny@ny.email.gs.com or from Wachovia Capital Markets, LLC, Equity Syndicate Department, 375 Park Avenue, New York, New York 10152, email: equity.syndicate@wachovia.com.

NuStar Energy L.P. is a publicly traded, limited partnership based in San Antonio, with 9,063 miles of pipeline, 86 terminal facilities, four crude oil storage tank facilities and two asphalt refineries with a combined throughput capacity of 104,000 barrels per day. One of the largest asphalt refiners and marketers in the U.S. and the third largest independent liquids terminal operator in the world, NuStar has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has over 86 million barrels of storage capacity, and includes two asphalt refineries, crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage facilities.

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the partnership's beliefs as well as assumptions made by and information currently available to the partnership. These statements reflect the partnership's current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.'s 2007 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.

NuStar Energy, L.P., San Antonio
Investors, Mark Meador, Director,
Investor Relations: 210-918-2895
or
Media, Mary Rose Brown, Senior Vice President,
Corporate Communications: 210-918-2314
Web site: www.nustarenergy.com