Murphy Oil Corp. has agreed to sell its 125,000 b/d refinery in Meraux, La., and related properties to Valero Energy Corp. for $625 million.
Murphy, which is withdrawing from the refining business, agreed in July to sell its 33,250 b/d refinery in Superior, Wisc., to Calumet Specialty Products Partners, Indianapolis (OGJ Online, July 26, 2011).
Of the purchase price, an estimated $300 million is for oil inventories at Meraux. The refinery has 37,000 b/d of fluid catalytic cracking capacity and extensive hydrotreating capacity.
The company announced last year that it would sell its three refineries in order to concentrate on exploration and production (OGJ Online, July 23, 2010). David M. Wood, Murphy president and chief executive officer, said the company now will focus on selling its 106,000 b/d refinery in Milford Haven, Wales.
Valero’s agreement to purchase the Meraux facility follows the completion last month of its purchase of the 220,000 b/d refinery at Pembroke, Wales, from Chevron Corp., which it announced in March (OGJ Online, Mar. 11, 2011). Valero paid $730 million for the refinery plus marketing and logistical assets and expected to pay $1 billion for inventories.
Bob Tippee | Editor
Bob Tippee has been chief editor of Oil & Gas Journal since January 1999 and a member of the Journal staff since October 1977. Before joining the magazine, he worked as a reporter at the Tulsa World and served for four years as an officer in the US Air Force. A native of St. Louis, he holds a degree in journalism from the University of Tulsa.
