BP is planning to sell three US refineries and their associated facilities because they do not suit its global refining strategy.
The refineries primarily supply wholesale products to local markets rather than to BP's own marketing operations. The plants�at Salt Lake City, Mandan, ND, and Yorktown, Va.�have a combined capacity of 177,000 b/d. BP operates five other refineries in the US.
The company will begin marketing the refineries in the next few weeks, and expects the sale process to be completed by mid-2001.
A spokesman said BP expects bidding to be competitive, since it has already received unsolicited inquiries about the refineries. He said the company will keep operating the refineries if bids are inadequate.
The Salt Lake City refinery converts 55,000 b/d of crude oil into gasoline, jet fuel, diesel fuel, propane, and industrial heating oil. Terminals in Salt Lake City and in Boise and Burley, Ida., will also be offered.
The Mandan refinery refines up to 60,000 b/d of crude into gasoline, diesel, and jet fuel. Bulk storage, pipeline, and terminal operations will be included in the sale.
The Yorktown refinery processes about 62,000 b/d of oil into gasolines and distillates. The sale will include a deepwater dock, waste water treatment plant, bulk storage tanks, and terminal operations.
John Manzoni, BP's regional president for the eastern US, said, "These divestments together with the recently completed sale of the Alliance Refinery in Louisiana and the intended sale of our stake in the Singapore Refining Co. will meet our target of reducing worldwide refining capacity by around 500,000 b/d, giving us the flexibility to provide products for the group's marketing operations in the most cost-effective manner."
Once BP sells those facilities, it will have 2.8 million b/d of capacity worldwide, of which about 1.5 million b/d will be in the US.