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In a statement released Tuesday on BP’s website, they plan to complete the sale of the company’s refineries in Texas City and Carson, CA. by the end of 2012. This will reduce the refining capacity of BP by 50 percent.
By focusing on refining operations in Indiana, Washington and Ohio, BP will “have greater flexibility to refine a range of crude oils including heavy grades, and on average are more diesel-capable than BP’s current portfolio,” according to the statement.
Sales of the two refining facilities will be subject to regulatory approval.
“The US remains a very important market for BP’s fuels, lubricants and petrochemicals businesses and the moves we have announced today will give BP a smaller, but well-positioned and very competitive portfolio of refining and marketing businesses,” said Iain Conn, BP chief executive refining and marketing. “I have no doubt that the businesses we are seeking to divest will prove extremely attractive to other operators.”
As part of the Calif. facility sale, BP plans to “divest the ARCO brand (though retaining brand rights for northern California, Oregon and Washington) and to retain ownership of and license the ampm brand,” according to the statement.
BP acquired the Texas City refinery, the third largest in the U.S., following the 1998 merger with Amoco. The company plans to keep the Texas City Chemicals complex located alongside the refinery.