BP to Sell Marcus Hook Refinery in Pennsylvania

abarrelfullabarrelfull wrote on 06 Aug 2012 12:18

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02 November 1995

BP announced today (2 November 1995) that it has agreed in principle to sell its refining and marketing interests in the Northeast US to the Tosco Corporation.
The sale comprises the 190,000 barrels a day Marcus Hook refinery near Philadelphia, nine petroleum product terminals and associated pipeline interests in Pennsylvania, Maryland, New Jersey, Massachusetts, and Maine.

It also includes a 15-year licence agreement under which Tosco will develop the presence of the BP brand in the Northeast region which currently consists of some 500 BP-branded service stations operated by independent dealers.

BP said it expects proceeds of $235 million for the assets and crude and product inventories. In addition, it will participate in future profits in the event that market conditions improve over the next five years, up to a cumulative $50 million.

The company said its third quarter results will include an exceptional charge of $385 million in respect of the transaction, approximately half to cover book value losses and costs associated with the sale, and the balance to provide for potential environmental liabilities.

Commenting on the sale, BP Oil Chief Executive Dr Rolf Stomberg said: "This is an initial step in a programme to reposition BP's international refinery network and to make it globally competitive."

BP said that the sale to Tosco is subject to various approvals and consents but is expected to close around year end.

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