BP sells Carson refinery, assets Tesoro in $2.5 billion deal

BP sells Carson refinery, assets to Tesoro in $2.5 billion deal

7:43 AM, 16th August 2012
BP sells Carson refinery, assets to Tesoro in $2.5 billion deal
Iain Conn, Chief Executive, Global Refining and Marketing, BP.

LONDON, UK: BP will sell its Carson, California refinery and related logistics and marketing assets in the region to Tesoro Corporation for $2.5 billion in cash (including the estimated value of hydrocarbon inventories and subject to post-closing adjustments) as part of a previously announced plan to reshape BP’s US fuels business. Additionally, BP has announced its plans to sell two gas processing plants in Texas.

Subject to regulatory and other approvals, Tesoro will acquire the 266,000 barrel per day refinery near Los Angeles as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada. The sale also includes BP’s interests in associated cogeneration and coke calcining operations. The closing is expected to happen before mid-2013.

“Today’s announcement is a significant step in the strategic refocusing of our US fuels business. Together with the intended sale of Texas City, this will allow us to focus BP’s operations and investments exclusively on our three northern US refineries, which are crude feedstock advantaged, and their large and important marketing businesses,” said Iain Conn, Chief Executive, Global Refining and Marketing, BP.

In February 2011 BP announced plans to refocus its refining and marketing business on its Northern US refineries and find buyers for Carson and the Texas City refinery in Texas. “We are pleased to be delivering on the plan we announced last year and when complete we will have a smaller, but well-positioned and competitive portfolio of refining and marketing businesses in the US,” added Conn.

Additionally, BP has now sold or agreed to sell assets worth $26.5 billion since 2010. The company has a target of $38 billion in disposals by the end of next year to help pay the costs of the Macondo well blowout in the Gulf of Mexico.

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