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BP gets $2.5 billion from sale of Texas refinery to Marathon

Home Forums Refining Community Refinery News BP gets $2.5 billion from sale of Texas refinery to Marathon

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  • #1799

    4 drums coker

    The deal includes $600m in cash, $1.2bn for the plant’s inventories, and a further $700m depending on future output and margins.
    The sale comes as the UK oil giant continues to raise cash to pay for the 2010 Deepwater Horizon oil spill.
    BP said it had raised $35bn of a target of $38bn by the end of next year.
    Together with the refinery, Marathon is buying a number of natural gas pipelines and four marketing terminals in the south-east of the country. The deal is subject to regulatory approval.

    Paul Orlowski

  • #4571


    The agreement also contains an earnout provision under which MPC could pay up to an additional $700 million over six years, subject to certain conditions. The acquisition is expected to be funded with cash on hand, and is anticipated to close early in 2013, subject to customary closing conditions and regulatory approvals. The BP Texas City refinery is one of the largest and most complex in the US, with a Nelson complexity index of 15.3. The refinery operates a 63,000-bpcd hydrocracker and a 29,700-bpcd coking unit. The facility is strategically positioned to provide products throughout the US Gulf Coast, Midwest and Southeast, as well as into export markets. The refinery has the flexibility to process a wide range of crude oils, and it has access to price-advantaged mid-continent and Canadian crudes. With the Texas City refinery, MPC will operate 1.64 million bpcd of capacity.

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