BP has completed the previously-announced sale of its refinery in Carson, California, and
related logistics and marketing assets to Tesoro for
approximately $2.4 billion, the companies said on
"We are pleased to have closed this transformational
acquisition," said Greg Goff, CEO of Tesoro. "This transaction
is a unique opportunity for Tesoro to combine the best aspects
of two West Coast refining, marketing and logistics
businesses resulting in a more efficient world-scale integrated
refining, marketing and logistics
BP said the move was part of a
plan to reshape its US fuels business. Cash proceeds
from the sale include approximately $1.075 billion for assets
and an estimated $1.35 billion primarily for inventory at
market value and other working capital.
With the completion of this divestment the strategic
refocusing of our U.S. fuels portfolio is essentially
complete said Iain Conn, CEO of BPs global refining and marketing business.
BPs US fuels business is now anchored around three,
highly sophisticated northern refineries, which are crude feedstock-advantaged, and tied to
strong marketing businesses.
BP said it will continue to maintain a number of business
interests in California, including a large ARCO retail and
logistics presence that includes approximately 270 retail sites
in the northern part of the state. BP will also continue the
distribution and marketing of lubricants through its Castrol
brand and remain active in the California natural
gas and power sector.
California remains an important state for us and we
remain committed to supplying our customers in Northern
California and the rest of the Pacific Northwest with the
quality fuels they depend on, said Jeff Pitzer, BPs
president of the Northwest fuels value chain.
Weve recently upgraded our Cherry Point,
Washington, refinery to produce cleaner-burning
diesel fuel and are building a new rail terminal at the plant
to take advantage of growing supplies of domestically produced
In addition to marketing conventional fuels and lubricants in
the state, BP said it will continue to support the development
of renewable energy sources in California through its Global
Biofuels Technology Center in San Diego, and
the Energy Biosciences Institute at UC Berkeley.
With the transactions closing on June 1, Tesoro took
ownership of the 266,000-bpd Carson refinery near Los Angeles 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.
While the sale included BPs ARCO retail brand rights,
BP has exclusively licensed those rights from Tesoro for
Northern California, Oregon and Washington.
BP retains ownership of the ampm convenience store
brand and has franchised it to Tesoro for use in the
Cover image courtesy of Thomas Hawk via Flickr