Tesoro sells Hawaii refinery to Par Petroleum
Par Petroleum agreed to buy all of Tesoro's interests in Tesoro Hawaii, which operates the 94,000 bpd Kapolei refinery, retail stations and associated logistical assets.
Tesoro signed an agreement with Par Petroleum to sell all of
its interest in Tesoro Hawaii, which operates the
94,000 bpd Kapolei refinery, retail stations and
associated logistical assets, the company said Tuesday.
As part of the agreement, Par Petroleum intends to operate the
assets as an integrated refining, logistics and retail
The sales price of the Hawaii operations is $75 million, plus
the market value of net working capital, which is expected to
be approximately $225 million to $275 million.
Also included is an earn-out arrangement payable over three
years up to $40 million based on consolidated gross margins.
Tesoro anticipates completing the sale in the third quarter
2013, subject to regulatory approval. Aegis Energy Advisors
Corp. and Norton Rose Fulbright advised Tesoro in this
"We are pleased to have reached this positive outcome for the
company," said Greg Goff, president and CEO of Tesoro. "While
the Hawaii operations do not align with our strategic focus, we
believe they offer a great opportunity for Par Petroleum."