BP has finally found a buyer for its Texas City refinery, one of the largest and most complex in the U.S.
Marathon Petroleum Corp. will pay $598 million for the refinery and other nearby pipelines and fuel terminals, plus $1.2 billion for the inventory of oil and petroleum products owned by the plant. Marathon may have to pay another $700 million over 6 years if certain unspecified conditions are met, Marathon said Monday.
The refinery has a troubled history. A 2005 fire and explosion at the plant killed 15 workers and injured nearly 200 others.
BP PLC been trying to sell refining and other assets to help cover costs associated with the 2010 Deepwater Horizon explosion and oil spill.
The Texas City refinery processes 475,000 barrels of oil per day.
"This sale will reduce BP’s presence in the Southeast U.S., however BP remains firmly committed to growing and strengthening our BP-branded retail network and the value of the BP brand east of the Rockies in partnership with BP-branded jobbers and dealers," said Doug Sparkman, president of BP's East of Rockies fuels business. "A number of valued jobbers are affected by this transaction and we are committed to working very closely with Marathon Petroleum to make this transition as smooth as possible."