BP to sell its interest in the BP-Husky Toledo refinery

Under the terms of the deal, Cenovus will pay US$300 million for BP’s stake in the refinery, plus the value of inventory, and take over operations when the transaction closes, which is expected to occur later in 2022. BP and Cenovus will also enter into a multi-year product supply agreement.

The BP-operated refinery, which can process up to 160 000 bpd of crude oil, has been an important part of the region’s economy for more than 100 years, supporting jobs and safely supplying gasoline, diesel and other essential fuels and products.

This announcement follows another recent deal with Cenovus that, taken together, will help reshape BP’s North American oil and gas portfolio for long-term profitable growth.

In June 2022, BP entered into an agreement to sell its interest in the Sunrise oil sands project in Alberta, Canada, to Cenovus, and agreed to acquire Cenovus’s interest in the Bay du Nord project offshore Newfoundland and Labrador. Following the close of that deal, also expected in 2022, BP will no longer have interests in oil sands production and will shift its focus to future potential offshore growth in Canada.

In the US, after divesting its stake in the BP-Husky Toledo refinery, BP’s refining portfolio will reduce from three to two facilities. Going forward, the company will focus investment on its Whiting refinery in Indiana, and Cherry Point refinery in Washington, which are strategically positioned to serve customers in the Midwest and Pacific Northwest US.

Read the article online at: https://www.hydrocarbonengineering.com/refining/08082022/bp-to-sell-its-interest-in-the-bp-husky-toledo-refinery/