San Antonio-based refiner Tesoro has found a buyer for its Hawaii refinery in the shape of Par Petroleum (PP).
Houston-based PP will shell out $75 million (€56 million), plus working capital of between $225 million to $275 million, for the 94,000 barrel per day (bpd) refinery in Kapolei. The deal includes all retail stores and associated logistics.
‘We are pleased to have reached this positive outcome for the company,’ says Tesoro CEO Greg Goff, while adding the plant was not considered part of its strategic focus.
Tesoro revealed earlier this year that it would convert the refinery to a storage and distribution terminal if a buyer could not be found, with employee layoffs due to begin in June.
PP says the deal, expected to close in the third quarter, would be majority financed by issuing $200 million in common stock, plus the retail gas stations will remain under the Tesoro brand.
Brian Schatz, a Democratic US senator, was quoted as saying the operation is a critical part of Hawaii's economy and the purchase will ‘help with the availability of jet fuel, diesel fuel and other refined products’.
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