Husky Energy To Acquire Lima Refinery From Valero Energy Corporation

abarrelfull wrote on 10 Apr 2012 11:04
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Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. is pleased to announce that Husky has reached an agreement to acquire the refinery in Lima, Ohio from Valero Energy Corporation. The purchase price will be U.S. $1.9 billion, plus net working capital. The acquisition is subject to regulatory approval and is expected to close by the end of the second quarter of 2007.

“The acquisition of the Lima refinery represents a significant step in Husky's ongoing strategic move of expanding our downstream business and supports Husky's objective as a fully integrated energy and energy related company,” said Mr. Lau. "This transaction is expected to have an immediately positive financial contribution to Husky's earnings and cash flow.”

Husky will acquire the refinery through the purchase of all the outstanding shares of Lima Refining Company. The Lima refinery has a throughput capacity of 165,000 barrels per stream day of light crude oil and produces gasoline and diesel fuels that meet U.S. clean fuel standards. The refinery processes primarily light sweet crude oil and also has some capability of processing heavy crude oil.

Husky holds substantial oil sands leases covering 510 thousand acres in the Cold Lake and Athabasca regions of northern Alberta, Canada. Production at Husky's Tucker Oil Sands Project has commenced and development planning is proceeding for oil sands projects at Sunrise and Caribou Lake. Husky plans to review options for reconfiguring and expanding the Ohio Lima refinery to process heavy crude oil and bitumen, providing additional future investment in the community.

“Integration of the Lima refinery with future growth of heavy crude oil and oil sands production is part of Husky's long term strategy to enhance returns to shareholders by capturing the complete value chain,” added Mr. Lau.

• Husky Energy To Acquire Lima Refinery From Valero Energy Corporation

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