September 1, 2011 at 10:24 pm #2143
Valero Energy to Purchase Murphy’s Meraux Refinery
Press Release Source: Valero Energy Corporation On Thursday September 1, 2011, 5:00 pm EDT
SAN ANTONIO–(BUSINESS WIRE)– Valero Energy Corporation announced today that it has agreed to acquire Murphy Oil USA Inc.’s Meraux, La. refinery and related logistics assets for $325 million plus inventories currently estimated at approximately $300 million. The transaction is expected to be accretive to earnings upon closing. Valero plans to fund the transaction from available cash, and the transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals.
The Meraux refinery has a total throughput capacity of 135,000 barrels per day with a 34,000 bpd hydrocracker and significant hydroprocessing capacity, which gives the refinery the ability to process medium sour crude and produce significant yields of premium products. The plant has a dock on the Mississippi River and pipeline capability to Collins, Miss. On the river, the distance is only about 40 miles from the Valero St. Charles Refinery.
“Our plan is to integrate feedstocks and refined product blending with the St. Charles refinery, especially as our new 60,000 bpd hydrocracker is completed at St. Charles,” said Valero Chairman and CEO Bill Klesse. “The Meraux refinery adds more hydroprocessing capacity to our portfolio. It’s the right hardware in the right place.”
In addition to the refinery, the purchase price includes an adjacent product terminal, a 20 percent equity interest in the Collins Product Pipeline and T&M terminal, and a 3.2 percent interest in the Louisiana Offshore Oil Port (LOOP).
September 1, 2011 at 10:30 pm #4951
Here is update on Valero purchase of Murphy’s Meraux Refinery (forgot to sign in before article post). It looks like Valero intends to tie intermediate processing into its St Charles Coking refinery that is only 40 river miles away – so could become like recent pairing of COP’s Hartford-Woodriver or Holly’s Tulsa Sinclair-Sunoco combined plants.
The $325 MM purchase price Meraux Refinery gives a $2407/BPD capacity which fits within the table range of $2000-3000/BPD given by OGJ in June 2011 article (Volume 109/Issue 24) on comparison of US & EU purchases/sales in Refining industry up from distressed lows of $780/BPD but long way from merger highs in 2007 at the ~$16,000/BPD range or for new grassroots investment cost in +$25,000/BPD range. <Note see Coking.com Refinery news post 6/19/11 on this>
Also good PDF on web by KBC Technology put out 7/11/11 on Refining Perspective Update that caculates some the same refinery sale/purchase values in terms of $ per Complexity Capacity BD using Nelson Complexity & Capacity factors instead of just Capacity BD factors in OGJ June Tables.
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