Calumet Specialty Products Partners LP has completed the sale of its 21,000-b/d San Antonio refinery and related assets—including a crude oil terminal and pipeline—to Startlight Relativity Acquisition Co. LLC.
As part of the transaction—finalized on Nov. 11 but with an effective date of Nov. 1—Starlight agreed to pay $63 million in cash for the facility, property, and equipment, plus adjustments for net working capital, inventories, and post-closing amounts, Calumet said.
In a related transaction, Calumet entered into a settlement-and-release agreement with TexStar Midstream Logistics LP settling all outstanding litigation between the two parties, which will result in the release of a $38-million balance sheet liability.
“The divestment of the San Antonio refinery represents another step forward in Calumet’s strategic transformation,” said Tim Go, Calumet’s chief executive officer. “This transaction further delevers Calumet’s balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the partnership to focus its time and capital more intently on our higher-return core specialty products business.”
The San Antonio refinery, which processes crude oil and condensate primarily from the Eagle Ford basin, currently produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, ultralow-sulfur diesel, and atmospheric tower bottoms.
The refinery hosts about 250,000 bbl of storage capacity and includes 200,000 bbl of additional crude oil storage capacity at a crude oil terminal in Elmendorf, Tex.
Under Starlight’s ownership, the refinery has been renamed San Antonio Refinery LLC and will be operated by Lazarus Energy Holdings LLC, which also operates a 15,000-b/d crude distillation facility with about 1.2 million bbl of storage capacity, owned by Blue Dolphin Energy Co., in nearby in Nixon, Tex.
Contact Robert Brelsford at [email protected].
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
