BP on track with California refinery sale, upgrade projects in US

30 April 2013 22:02  [Source: ICIS news]

HOUSTON (ICIS)--BP remains on track to sell its 266,000 bbl/day Carson refinery in California to US-based Tesoro for $2.5bn (€1.9bn), the UK-based energy giant said on Tuesday.

“The divestment of the Carson refinery and associated assets is expected to complete by mid-2013, subject to regulatory approval,” BP CEO Bob Dudley said during a conference call on the company’s Q1 earnings.

BP announced in February 2011 that it planned to sell its Texas City and Carson refineries to focus on future downstream investments in Whiting, Indiana, and Cherry Point, Washington.

The company remains on track to start up the largest crude unit at its Whiting refinery in the second quarter, BP CFO Brian Gilvary said, enabling the commissioning of the facility modernisation project later this year.

BP began work on the crude unit in November as part of an upgrade project to improve the capacity at the 337,000 bbl/day refinery to intake cheaper, heavier crude oil.

“We also continued to make progress on the Whiting refinery modernisation project,” Dudley said. “This is now over 90% complete. We remain on track to bring the new operations on stream during the second half of 2013.”

In addition, BP’s clean diesel project in Cherry Point is also scheduled for operations in the mid-year, Dudley said.

The $85m project will allow the company to produce ultra-low-sulphur diesel fuel that meets or exceeds all on-road diesel regulations, BP said.

“We have maintained our focus on safe and reliable operations while also sustaining high refining availability through the quarter, building upon the strong performance last year,” Dudley said.

($1 = €0.76)

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By: Tracy Dang
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