Located near Lockwood in Montana, the downstream asset, which began operations in 1949, is a high-conversion, complex 63,000 barrels per day capacity refinery, which has been processing low-cost Western Canadian and regional Rocky Mountain crude oil grades
ExxonMobil and two of its subsidiaries have agreed to sell the Billings refinery and certain midstream assets in Montana and Washington to petroleum refineries company Par Pacific for a base price of $310m.
The deal is inclusive of the 112.6km long Silvertip pipeline, ExxonMobil’s 40% stake in the 1,207km long Yellowstone refined products pipeline, and Yellowstone Energy, as well as the company’s stakes in seven refined product terminals in the two American states.
Hydrocarbon and other inventory, which are involved in the transaction, will be valued at the time of closing.
The Billings refinery has been operating since 1949 on the bank of the Yellowstone River near Lockwood in Montana. It has a processing capacity of 63,000 barrels per day (bpd).
The downstream asset is a high-conversion, complex refinery, which has been processing low-cost Western Canadian and regional Rocky Mountain crude oil grades. Crude oil to the Billings oil refinery is supplied by producers across Wyoming and Alberta in Canada.
ExxonMobil product solutions president Karen McKee said: “ExxonMobil is focused on investing in facilities where we can manufacture higher-value products such as lubricants and chemicals.
“We have proudly operated the Billings refinery since 1949 and we thank our more than 300 talented employees for their dedicated service.”
As per the terms of the agreement, Par Pacific will continue supplying Exxon- and Mobil-branded service centres located in the region.
Par Pacific said that it is assessing opportunities for producing renewable fuels to complement conventional fuel production at the Billings refinery.
Par Pacific president and CEO William Pate said: “This acquisition will significantly enhance our scale and geographic diversification and underpins our focus on pursing strategic growth initiatives.
“We look forward to welcoming the dedicated and highly skilled Billings employees to our team. This acquisition expands our fully integrated downstream network in the western United States.”
The deal, which is subject to regulatory approvals and other conditions, is anticipated to close in Q2 2023.