Under the agreement, MPC will buy the 451,000 barrel per day (bpd) refinery, three intrastate NGL pipelines originating at the refinery, four terminals, and an allocation of BP’s Colonial Pipeline Company shipper history which represents 50,000bpd.

It will also purchase the retail marketing contract assignments for approximately 1,200 branded sites and a 1,040MW cogeneration facility which provides steam and electricity to the refinery.

The base price for deal is $598m whereas the hydrocarbon inventories have been evaluated at $1.2bn with a provision for MPC to pay $700m over six years depending upon the profits it earns from the output of the refinery.

MPC president and chief executive officer Gary R Heminger said the company has acquired the refinery and its related assets as a part of a strategic business step.

"This acquisition will provide MPC the opportunity to capture synergies across our existing Gulf Coast operations; optimize commercial and process improvements; expand our retail presence in the Southeast; and enhance our ability to sell products into export markets," Heminger said.

The refinery has the flexibility to process a wide variety of crude oils and supply the products across the US Gulf Coast, Midwest, Southeast, and into export markets through pipelines and waterborne cargoes.

MPC and BP are expecting close the deal in early 2013 after receiving all the customary and regulatory approvals.