Marathon to close deal on BP’s Texas refinery by week’s end

30 January 2013 16:04  [Source: ICIS news]

HOUSTON (ICIS)--US refiner Marathon Petroleum will close its transaction to buy BP’s Texas City refinery in Texas by 1 February, the company said on Wednesday.

In October, Marathon signed an agreement with BP to acquire the 475,000 bbl/day refinery near Galveston Bay for approximately $598m (€443m), plus inventories estimated at $1.1bn.

Marathon expects the refinery boost earnings in the first year of operation, the company said in its fourth-quarter earnings call.

Speaking of the transaction, Marathon'spresident and CEO Gary Heminger said: “It will augment our ability to process a wide variety of crude oils, provide us additional access to refined product markets and give us a significant refining presence in the western Gulf of Mexico region, which will provide additional balance to our system.”

The Texas City refinery ranks as the third largest for processing capacity in the US.

($1 = €0.74)

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By: Anna Matherne

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