Regulators Clear Deal Husky Sunrise JV – BP Toledo Coking Refinery

[Charles RandallParticipant]

Regulators Clear Husky-BP Refinery Deal
Tuesday February 5, 6:38 pm ET
Antitrust Regulators Clear Husky Energy’s Acquisition of BP’s Ohio Refinery
WASHINGTON (AP) — Federal antitrust regulators have cleared BP PLC’s sale of a half-share in its Toledo, Ohio refinery to Canadian oil and gas producer Husky Energy Inc., a government agency said Tuesday.
BP agreed to sell the stake to Husky in December. Husky also agreed to sell a half-stake in a Canadian oil field to BP. Financial terms of the deal were not disclosed.
The Federal Trade Commission included the deal on a list of transactions that received an “early termination” of their antitrust reviews. Early termination refers to the completion of a review by the FTC or Justice Department before the end of a 30-day period required under antitrust law. Shares of BP fell 93 cents to close at $63.48.

[Charles RandallParticipant]

Here is update on Husky – BP Toledo JV on Canadian Sunrise crude (also includes Husky Lima Expansion).
Husky & BP will each have 50% of 155 MBD capacity of BP Toledo coking refinery which will be retooled to run 120 MBD of Canadian Bitumen crude from Husky Sunrise Upgrader (cost ~$2.5 million retool BP Toledo) and raise capacity to 170 MBD.  The companies will also share ownership Sunrise Bitumen Crude upgrader in Alberta (60 MBD 2012, 200 MBD by 2015-2020 phase). 
 
The BP deal has caused Husky to postpone the Llyodminster upgrader expansion again.
 
Husky recently also bought the Lima refinery in July 2007 (from Valero – but was previously owned by Premcor (from Clark merger) who purchased it originally from BP). The expansion plans for Lima Coking Refinery also include use of Sunrise upgrader but is not part of the Husky-BP JV.
Regards

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