UK-based multinational oil and gas company BP has completed the sale of its Carson refinery and related logistics and marketing assets in US to Tesoro for about $2.4bn.
The divestment included 266,000 barrel per day refinery and the associated logistics network of pipelines and storage terminals that are located near Los Angeles and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada.
BP has divested the assets as part of its strategic plan to reshape its US fuels business.
The company sold the assets for $1.075bn and the inventory was valued at $1.35bn.
BP global refining and marketing business chief executive Iain Conn said the divestment was a strategic move to refocus on its US fuels portfolio.
"BP’s U.S. fuels business is now anchored around three, highly sophisticated northern refineries, which are crude feedstock-advantaged, and tied to strong marketing businesses," Conn added.
The deal also include BP’s ARCO retail brand rights, but the company holds exclusively licensed rights from Tesoro for Northern California, Oregon and Washington.
BP retains the ownership of the ampm convenience store brand and has franchised it to Tesoro for use in the Southwest.
BP’s Northwest Fuels Value Chain president Jeff Pitzer said, "California remains an important state for us and we remain committed to supplying our customers in Northern California and the rest of the Pacific Northwest with the quality fuels they depend on."
"We’ve recently upgraded our Cherry Point, Washington refinery to produce cleaner-burning diesel fuel and are building a new rail terminal at the plant to take advantage of growing supplies of domestically produced crude oil," Pitzer added.