BP Sells Texas City Refinery to Marathon Petroleum

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BP Corporate Headquarters

British Oil Giant Adapts New Strategy

“This sale will reduce BP’s presence in the Southeast U.S., however BP remains firmly committed to growing and strengthening our BP-branded retail network and the value of the BP brand east of the Rockies in partnership with BP-branded jobbers and dealers,” said Doug Sparkman, president of BP’s East of Rockies fuels business.

The divestiture follows the decision to adapt a new strategy in the United States, BP confirms: “During the past several years the Texas City Refinery has been transformed through a resolute focus on safe, compliant, and reliable operations and in recent months has returned to profitability. It does not, however, fit with the long-term strategic direction of BP’s global refining portfolio,” said Texas City Refinery manager Keith Casey.

Additional Information

Aditional Information

BP's Refinery Operations in the US

The Texas City refinery became part of BP with the 1998 merger with Amoco. It is a large, highly complex refinery with a nameplate 475,000 barrels per day of refining capacity. The refinery employs some 2,150 BP staff and contractor numbers can vary between 1,000 and 3,000 each day.

Three natural gas liquids pipelines connect the refinery with local suppliers and customers and some out-of-service lines in the Gulf Coast area are included in the transaction. The adjacent South Houston Green Power cogeneration facility is an integral part of the power infrastructure at the refinery and is included in the sale.

BP is currently in the process of carrying out a number of major investments in its other U.S. refineries, including a large investment program to transform its 413,000 barrels per day capacity Whiting, Indiana refinery; a clean-diesel upgrading project at its 234,000 barrels per day Cherry Point, Washington refinery; and the addition of a continuous catalytic reformer to the 160,000 barrels per day capacity Toledo, Ohio, refinery (a 50:50 joint venture with partner Husky Energy Inc.).

Modernisation at Three BP Refineries in the US

The remaining three refineries of BP currently undergo excessive maintenance and turnaround projects: The company is in the midst of a multi-billion dollar modernization effort at its Whiting Refinery in Northwest Indiana. The BP Cherry Point Refinery in the state of Washington is being upgraded to produce cleaner-burning diesel fuel and the BP Husky joint venture near Toledo, Ohio is investing to improve its gasoline making capabilities.

“When we complete these sales and our Whiting Refinery upgrade project next year, we will have a smaller, well-positioned and highly competitive portfolio of refining and marketing businesses in the U.S.,” Conn added.

The strong competition from shale gas in the US also affect's the "Old World'S oil industry: Europe's crisis–struck refinery industry enjoys an unpredicted 'second spring' as plant closures in the US led to a shortage in refinery products. Global Data’s expert analyst Jeffrey Kerr believes that European gasoline production could play a vital role for supplying America.

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