BP closes Texas City sale

Texas City: Supermajor completes handoff of troubled facility to Marathon Petroleum

BP said Friday it had completed the estimated $2.4 billion sale of its Texas City refinery and other downstream assets to Marathon Petroleum.

The UK supermajor aimed to divest the facility as part of a $38 billion corporate slimdown following the Macondo disaster.

The 475,000 barrel-per-day refinery was also the site of a deadly explosion in 2005 that killed 15 people and raised widespread questions about safety practices at the UK supermajor.

The deal is made up of $600 million cash, $1.1 billion for oil and gas inventory and the remainder from future payouts.

The refinery, formerly BP's largest in the world, lies south of Houston near Galveston island.

“The teams running the Texas City refinery and related marketing assets have made remarkable progress in both safety and reliability and they should feel very proud of these accomplishments,” Ian Conn, chief executive of BP’s refining and marketing business, said in a statement.

“This is once again a valuable business with a firm future. As it moves to Marathon Petroleum, the refinery and its employees have a strong platform from which to continue this journey and build on their many achievements.”

BP also intends to finalise the sale of its Carson City refinery in California this year. The company will retain three refineries and thousands of retail fuel stations in the US and their associated marketing businesses.

“Our continued drive to be the preferred fuels brand in our U.S. markets remains unchanged,” Doug Sparkman, president of BP’s East of Rockies fuels business, said according to BP.

Newsletter signup

User

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login