Tesoro acquires BP’s Carson refinery, related assets in US for $2.4bn

BP has completed the sale of its Carson refinery and related logistics and marketing assets in California, US, to Tesoro for about $2.4bn.

The transaction includes payment of $1.075bn in cash and an estimated $1.35bn for inventory at market value and other working capital.

The Carson refinery has crude distillation capacity of 266,000 bpd and processes crude oil from Alaska’s North Slope, the Middle East and West Africa.

The processing equipment comprises the largest fluid catalytic cracker in California, two cokers and distillate hydrocracking.

As part of the deal, Tesoro also acquired refinery and integrated terminals and pipelines, and signed marketing agreements with about 800 retail sites in Southern California, Arizona and Nevada.

The sale also includes BP’s 51% interest in a nominal 400MW cogeneration facility located at the refinery and Wilmington Coke Calciner, located about five miles from the refinery.

The logistical assets in the sale included Berth 121 facility improvements equipment, Marine Terminals 2 and 3 and the LA Basin pipelines system, which moves crude, products and intermediates.

The terminals comprised in the sale include Carson Crude, East Hynes, West Hynes, Hathaway, Carson Products, Colton, Vinvale, and San Diego.

BP global refining and marketing business chief executive, Iain Conn, said the strategic refocusing of company’s US fuels portfolio has been completed with the completion of the divestment.

"BP’s US fuels business is now anchored around three highly sophisticated northern refineries, which are crude feedstock-advantaged, and tied to strong marketing businesses," Conn added.

BP, a UK-based multinational energy firm, completed the divestment of Texas City refinery to Marathon Petroleum in February 2013.

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Image: BP’s world headquarters in St. James’s, City of Westminster, London. Photo: Courtesy of WhisperToMe.