French oil giant Total has announced that it has reached an agreement to sell its 70% stake in the Milford Haven oil refinery in Wales, UK to its partner in the facility, Murco Petroleum. Although Total did not reveal the financial details, Murphy Oil, Murco's US-based parent company, said that the firm would purchase the stake for $250 million.
<p>Murco already owns 30% of the refinery and, following the completion of the transaction, which is expected to occur by the end of 2007, Murco will be the sole owner of the refinery, which has a yearly refining capacity of 5.3 million tons, and a daily refining capacity of 108,000 barrels. Murco will also be the sole employer of the refinery's workforce.<br /><br />According to Murphy Oil, the transaction includes the land, refinery complex, jetty and pipeline connection to the mainline pipeline. The refined oil products will continue to be marketed through Murco's existing network of both company- and dealer-operated petrol stations in England and Wales. <br /><br />Total said that the divestiture will allow it to focus on its UK refining operations at its wholly owned Lindsey oil refinery, which has a capacity of 10 million metric tons and matches Total's marketing needs in the UK. Total recently embarked on a E300 million capital investment program to meet growing demand for low-sulfur diesel.<br /><br />Claiborne Deming, president and CEO of Murphy Oil, said that the acquisition would allow the company a unique opportunity to expand its presence in the UK market via a strategic asset with which it is already well acquainted. Murco has been a partner in the facility for over 26 years and plans to work on optimizing its operations in the future.</p>