BP sells the next US refinery: The company has agreed to divest its Texas City facility to Marathon Petroleum for US $ 2.5 Billion. Its the second sale of a BP refinery in the US this year.
Texas City, Texas/USA – “Today’s announcement is the second major milestone in the strategic refocusing of our U.S. fuels business,” said Iain Conn, chief executive of BP’s global refining and marketing business. “Together with the sale of our Carson, California refinery, announced in August, the divestment of Texas City will allow us to focus BP’s U.S. fuels investments on our three northern refineries, which are crude feedstock advantaged, and their associated marketing businesses. Marathon Petroleum is a highly respected refiner and marketer.
Their ability to take on the responsibilities of this large and complex refinery will be good for the long-term future of the business and its employees. Although largely a merchant refinery, we have decided to also sell certain terminals and marketing assets in the Southeast U.S.”
Divestments of US $ 38 Billion Expected in BP's US Refinery Business
With today’s agreement the total value of the divestments that BP has agreed since the beginning of 2010 is now over US $ 35 billion. BP expects this total to reach US $ 38 billion by the end of 2013. After approval by regulatory and market authorities, Marathon Petroleum will purchase the 475,000 barrel per day refinery, associated natural gas liquids pipelines, and four marketing terminals in the Southeast U.S. BP will also assign certain branded jobber contracts supplying approximately 1,200 retail sites in Tennessee, Mississippi, Alabama and Florida which could be supplied by the refinery.
BP will remain a significant retailer of fuels in the U.S., with approximately 8,000 BP and ARCO-branded sites in the Midwest, Pacific Northwest and along the East Coast. BP anticipates the transaction will close by early 2013.
Currently refinery markets in Asia boom while US and European refiners struggle with low margins. More in Refinery Markets in Asia and the Middle East Boom.
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