Calumet Lubricants Co. LP has signed a letter of intent to purchase Pennzoil-Quaker State Co.'s 46,200-b/d refinery in Shreveport, La. The deal is expected to close by May.
Calumet bought Pennzoil-Quaker State's interests in the Bareco partnership with Baker Petrolite, a division of Baker Hughes Inc., and in the Rouseville, Pa., refinery in April 2000.
Calumet was using the 15,700-b/cd Rouseville plant to process wax instead of crude (OGJ, Dec. 18, 2000, p. 56).
Pennzoil-Quaker State is focusing on its automotive consumer products businesses.
Over the last year, the company has sold its 50% interest in Penreco, a joint venture with Conoco Inc., to M.E. Zukerman Energy Investors Inc., New York (OGJ Online, Jan. 4, 2001). It also sold its interest in Viscosity Oil Co. to Italian company FL Selenia.
"The sale of the Shreveport refinery represents the last significant milestone in our divestiture program," said James J. Postl, president and CEO of Pennzoil-Quaker State. "While we still need to execute the definitive agreement, based on our experience with Calumet we are optimistic that a transaction will be completed."
The purchase price was not disclosed, but a statement said, "The company expects to recover approximately $60 million in working capital."