Amoco Oil Co. has decided to keep its 40,000 b/cd Salt Lake City, Utah, refinery and related products marketing assets.
The company posted a "for sale" on the plant and marketing operations early this year (OGJ, Jan. 27, p. 30).
But Amoco Pres. William G. Lowrie said buyer interest did not match the value Amoco places on the operations. So the company plans to invest about $50 million during the next 2 years for near term operation of the facilities.
Lowrie said marketing assets, which include three terminals and 39 Rainbo gasoline outlets, are profitable and are projected to remain so for the near term.
Amoco will continue to evaluate options for the longer term.
"Like many other refiners we remain concerned about the long-term profitability of U.S. refineries due to the costly current and contemplated environmental regulations-many of which are ineffective and not based on sound science," Lowrie said.
"However we hope that through studies like the one just completed at our Yorktown, Va., refinery, we will be able to work more closely with government on regulations that are not only environmentally effective, but cost effective as well" (see p. 11).
Lowrie said the $50 million outlay at the refinery is needed to meet environmental regulations on particulate matter and highway diesel fuel desulfurizations standards, along with other projects to sustain current operations.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
