US Valero to buy Murphy’s Meraux refinery for $625m

02 September 2011 02:46  [Source: ICIS news]

HOUSTON (ICIS)--Valero has agreed to acquire Murphy Oil’s Meraux 135,000 bbl/day refinery in Louisiana for $625m (€438m), including inventories, the US refining major said on Thursday.

Valero will pay $325m for the refinery and related logistics assets and it will acquire inventories estimated to be worth around $300m, it said.

The purchase price includes an adjacent product terminal and a 20% equity interest in the Collins Product Pipeline and T&M terminal.

Murphy's Meraux refinery has a 34,000 bbl/day hydrocracker and significant hydroprocessing capacity, which gives the refinery the ability to process medium sour crude and produce significant yields of premium products, Valero said.

“Our plan is to integrate feedstocks and refined product blending with [Valero’s] St Charles refinery, especially as our new 60,000 bbl/day hydrocracker is completed at St Charles,” said Valero CEO Bill Klesse.

“The Meraux refinery adds more hydroprocessing capacity to our portfolio. It’s the right hardware in the right place,” he added.

($1 = €0.70)

For more on Valero and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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