BP sells off troubled refinery in US to help defray Deepwater costs
BP has sold its troubled Texas City oil refinery for $2.5bn (£1.5bn) to the US company Marathon Petroleum.
The deal is part of the oil giant's targeted $38bn sell-off by the end of 2013 to cover the costs of the Deepwater Horizon disaster. The Texas refinery is the third largest in the US but has been problematic for BP since an explosion in 2005 killed 15 people.
BP was fined $50m in 2007 after it pleaded guilty to failing to have adequate maintenance procedures at the refinery. Two years ago it paid a further $50.6m fine and promised to spend half a billion dollars on safety improvements, after it was found guilty of failing to fix safety hazards. In a statement accompanying the sale announcement, Texas City's manager Keith Casey said the refinery had been transformed in the past few years through a "resolute focus on safe, compliant and reliable operations".
Gary Heminger, the president of Marathon Petroleum, also focused on safety, saying: "We have a long-standing commitment to safe and environmentally conscious operations."
The company is now the fifth-largest refiner in the US, with six plants, including an existing refinery in Texas City that produces 80,000 barrels a day.
The $2.5bn sale price includes $600m in cash, $1.2bn for inventories and a $700bn "earnout provision". The refinery produces 451,000 barrels a day and employs 2,150 staff. It was acquired by BP when it merged with Amoco in 1998.
In August BP sold its Carson, California refinery to Tesoro for $2.5bn. Yesterday's deal brought the total value of sell-offs BP has agreed since 2010 to more than $35bn. The deal included three gas liquid pipelines and four marketing terminals in the south-east of the US. Marathon has also been handed gasoline contracts for 1,200 BP retail locations in four southern US States.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
Emergency landing at Heathrow sparks further controversy over London airport capacity
Two bailed after arrest over Woolwich attack Twitter comments
Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
Men arrested after RAF jet is scrambled to escort Pakistan Airlines passenger plane to London Stansted Airport
- 1 What, let gays get married? We must be bonkers
- 2 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 3 Rocky Horror star Tim Curry 'suffers major stroke'
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.