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.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 3 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...