BP to sell Carson refinery and assets to Tesoro
BP will sell its Carson refinery, related logistics and marketing assets in the California region to Tesoro Corporation for $2.5bn in cash, as part of a previously announced plan to reshape BP's US fuels business.
The agreement will enable Tesoro to acquire the 266,000bpd refinery near Los Angeles, as well as the ARCO-branded retail marketing network in Southern California, Arizona and Nevada.
As part of the sale, BP will also sell its interests in associated cogeneration and coke calcining operations.
Iain Conn, BP global refining and marketing business chief executive, said the announcement is a step in the strategic refocusing of the company's 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," Conn added.
"As an established refiner and marketer, Tesoro provides a strong future for the business and for its employees.
"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 very competitive portfolio of refining and marketing businesses in the US."
The sale is part of the previously announced programme of BP to divest $38bn of assets by the end of 2013 and to refocus on refining and marketing business on the northern US refineries.
The closing of the deal is expected to happen before mid-2013, according to BP.