BP has agreed to sell its 266,000 bpd Carson refinery in California and related
logistics and marketing assets in the region to Tesoro for $2.5
billion in cash, officials said on Monday.
The deal value includes the estimated value of hydrocarbon
inventories and subject to post-closing adjustments. The
company noted that the sale is part of a previously-announced
plan to reshape BPs US fuels business.
Today's announcement is a significant step in the
strategic refocusing of our US fuels business, said Iain
Conn, CEO of BP's global refining and marketing business.
Together with the intended sale of Texas City, this
will allow us to focus BP's operations and investments
exclusively on our three northern US refineries, which are
crude feedstock advantaged, and their
large and important marketing businesses.
Subject to regulatory and other approvals, Tesoro will acquire
the Los Angeles-area refinery as well as the associated
logistics network of pipelines and storage terminals and the
ARCO-branded retail marketing network in Southern California,
Arizona and Nevada.
The sale also includes BP's interests in associated
cogeneration and coke calcining operations.
The sale is expected to close before mid-2013.
"As an established refiner and marketer, Tesoro provides a
strong future for the business and for its employees," said
BP will sell the ARCO retail brand rights and exclusively
license those rights from Tesoro for Northern California,
Oregon and Washington and continue to produce transportation
fuels at its Cherry Point, Washington refinery, the company
BP will also retain ownership of the ampm
convenience store brand and franchise it to Tesoro for use in
In February 2011, BP announced plans to refocus its refining and marketing business on
its northern US refineries and find buyers for Carson and the
Texas City refinery in Texas.
We are pleased to be delivering on the plan we
announced last year and when complete we will have a smaller,
but well-positioned and very competitive portfolio of refining and marketing businesses in
the US, Conn said.
"BP remains committed to supplying US customers with the
fuels, lubricants and petrochemicals they depend on while
at the same time delivering long-term growth and profits to our
The announcement brings the total value of BP divestments
since the beginning of 2010 to $26.5 billion, putting the
company closer to its target of $38 billion in asset sales by
the end of 2013.
Cover photo courtesy of Thomas Hawk, Flickr