BP asset sale stays on target

By BILL LEHANE London

 11 October 2012 22:59 GMT

BP HAS edged even closer to its targeted $38 billion worth of asset sales following the Macondo disaster of 2010 by selling its Texas City oil refinery in the US to Marathon Petroleum for $2.5 billion, writes Bill Lehane.

A portion of BP’s southeastern US retail and logistics network is also part of the sale, including four marketing terminals and contracts on 1200 retail sites supplied by the refinery.

The price includes $600 million in cash at closing, an estimated $1.2 billion for hydrocarbon inventories and a $700 million six-year earn-out arrangement based on future margins and refinery throughput, BP said.

The deal means BP has now reached $35 billion, or more than 90%, of its targeted asset sale programme. It expects to reach the full total by the end of next…

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