ConocoPhillips Seeks Buyer for Trainer, Pa., Refinery

abarrelfullabarrelfull wrote on 28 Sep 2011 11:49
Tags: conoco refinery usa

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ConocoPhillips [NYSE:COP] announced today that it is seeking a buyer for its 185,000 barrel-per-day refinery in Trainer, Pa., and associated pipelines and terminals. ConocoPhillips will immediately begin the process of idling the facility and will permanently close the plant in six months if a sales transaction is unsuccessful.

“After exploring a wide range of alternatives for the refinery, the decision to sell is based on the level of investment required to remain competitive,” said Willie Chiang, senior vice president of Refining, Marketing, Transportation and Commercial. “U.S. East Coast refining has been under severe market pressure for several years. Product imports, weakness in motor fuel demand, and costly regulatory requirements are key factors in creating this very difficult environment. This action is consistent with our stated strategic objective to reduce our refining portfolio,” added Chiang.

“Trainer Refinery has a rich history and we are both proud and appreciative of the efforts and strong performance demonstrated by our employees. Our people have shown a long-standing commitment to operating in a safe, reliable and efficient manner,” said Chiang.

ConocoPhillips employees and contractors have been notified of the idling and potential permanent closure of the facility if a sales transaction cannot be completed. ConocoPhillips will redeploy employees to other positions within the company where possible. Employees who are not redeployed will receive severance benefits and job placement services.

“We are grateful for the relationships we have within the local communities, recognize the potential adverse impacts of this decision, and pledge to keep our employees and communities informed as this process moves forward,” said Chiang.

The company expects to recognize a non-cash asset impairment of approximately $300 million after tax in its third-quarter financial results.

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