BP sells Texas refinery Marathon Petroleum $2.4 billion

BP sells Texas refinery to Marathon Petroleum for $2.4 billion

7:18 AM, 5th February 2013
BP sells Texas refinery to Marathon Petroleum for $2.4 billion

 

LONDON, UK: BP has completed the previously announced sale of its Texas City, Texas refinery and a portion of its retail and logistics network in the Southeast US to Marathon Petroleum Corporation for an estimated $2.4 billion. This comprises approximately $0.6 billion in cash, $1.1 billion for the estimated value of hydrocarbon inventory and an earn-out arrangement payable over six years of $0.7 billion (based on assumed future margins and refinery throughput).

“The completion of this divestment is a major milestone in the refocusing of our US fuels portfolio. Together with the sale of our Carson, California refinery, which we also expect to close this year, the divestment of Texas City allows us to focus BP’s US fuels investments on our three northern refineries, which are crude feedstock advantaged, and their associated marketing businesses,” said Iain Conn, Chief Executive, Global Refining and Marketing Business, BP.

“The teams running the Texas City refinery and related marketing assets have made remarkable progress in both safety and reliability and they should feel very proud of these accomplishments. This is once again a valuable business with a firm future. As it moves to Marathon Petroleum, the refinery and its employees have a strong platform from which to continue this journey and build on their many achievements,” added Conn.

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