The Tesoro purchase of BP Carson plant @ $2.5B – of course of that amount only ~$175MM is for Refinery, Coker, Calciner & Cogen assets which nets to ~15% of its replacement value. Rest $2.5B goes towards inventory (~$1.3B for Crude & Products) and Pipeline/Storage Assets plus Arco/ Brand Retail Distribution for CA/AZ/NV to Tesoro Logistics at extremely cheap value for remaining $1.01 B.
They are also going integrate the existing Tesoro Wilimington 97MBD plant to make Mega refinery 370MBD that they will then crunch down as they optimize and shutdown units to handle AB 32 GHG regulations. Tesoro will likely make short term shift towards more Shale Crude to replace some BP’s ANS & Iraq crudes at Carson. This will also impact the Carson Calcined coke quality.
They wont have 3 plants as they claim in article if they integrate their Wilmington refinery – it will only be 2, but the total capacity will rise 533MBD which puts it ~tie with Chevron at 575MBD .
