Tesoro Corporation, through its affiliate Tesoro Refining and Marketing Company LLC, has acquired Dakota Prairie Refining, LLC (DPR), which owns a refinery near Dickinson, North Dakota, with strategic access to advantaged Bakken crude oil and is located just 100 miles west of the Tesoro Mandan refinery.
DPR's refinery has a crude oil capacity of 20 000 bpd and produces ultra low sulfur diesel (ULSD), naphtha and resid. Tesoro plans to continue to market the ULSD to local customers and utilise the naphtha and resid in its integrated value chain system.
In consideration for this acquisition, Tesoro is ensuring the continued servicing of DPR's US$66 million term loan debt and contributing approximately US$10 million toward working capital.
"We have successfully grown our business in North Dakota, and created substantial value for our shareholders and local communities," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation. "This acquisition presents new opportunities for continued growth. We have already identified plans to drive substantial improvements, and we are prepared to execute on these plans in 2016. This includes system wide commercial and feedstock optimisation, increased efficiencies in distribution and reduced transportation and refining costs. As a result, we expect to generate more than US$20 million in annual operating income from this business - even if the current economic conditions continue."
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/refining/29062016/tesoro-acquires-dakota-prairie-refining-business-north-dakota-3600/