BP divests Texas refinery and related assets to MPC
Marathon Petroleum (MPC) has acquired BP's Texas refinery and part of its retail and logistics network in the south-east US for an estimated $2.4bn.
The transaction includes about $600m in cash, $1.1bn for the estimated value of the hydrocarbon inventory and an earn-out arrangement, payable over six years, of $700m, which is subject to certain conditions.
As part of the acquisition, MPC takes ownership of the 475,000 barrel per day (bpd) refinery, 1,040 megawatt cogeneration plant and intrastate natural gas liquids pipelines, plus four marketing terminals in the south-east US.
MPC president and chief executive officer Gary Heminger said the refinery and related assets should enhance the company's current footprint by integrating well with its existing operations.
"This transaction will provide MPC the opportunity to grow in contiguous markets, expand our export opportunities and further optimise our Gulf Coast operations," Heminger added.
According to BP, it has also assigned certain branded jobber contracts supplying around 1,200 retail sites in Tennessee, Mississippi, Alabama and Florida.
BP's global refining and marketing business chief executive Iain Conn said the sale marks a major milestone in the refocusing of the company's 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," Conn added.
BP, however, continues to market in the south-east US through more than 100 jobbers and around 2,400 branded retail outlets which were excluded from the Marathon acquisition.