Tesoro Hawaii operates the 94,000 barrel per day Kapolei refinery, retail stations and associated logistical assets.

The company priced its Hawaii operations for $75m, plus the market value of net working capital, which is expected to be about $225m to $275m.

The deal also includes an earn-out arrangement of up to $40m, which can be paid over three years based on consolidated gross margins.

Par Petroleum has plans to operate the assets as an integrated refining, logistics and retail system.

Tesoro president and CEO Greg Goff said the deal has reached a positive outcome for the company.

"While the Hawaii operations do not align with our strategic focus, we believe they offer a great opportunity for Par Petroleum," Goff

Tesoro is expecting to close the deal, which is subject to regulatory approval, in the third quarter 2013.