By OGJ editors
HOUSTON, Nov. 18 -- Williams Co. Inc., Tulsa, has agreed to sell its Alaskan business interests, including its refinery, to three companies for a total of $265 million, subject to closing adjustments for items such as the value of petroleum inventories.
Williams announced its intention to divest the North Pole refinery last year (OGJ Online, June 24, 2002).
Steve Malcolm, Williams' chairman, president and CEO, said, "This is simply a new day for Williams. We're exiting the refining sector, focusing on our natural gas businesses and wrapping up divestitures that we targeted for sale."
In addition to anticipated cash proceeds, the transaction will eliminate two letters of credit that Williams has with the state of Alaska, releasing $90.9 million to Williams.
Williams is divesting its Alaska operations through three separate transactions:
--Flint Hills Resources LP, Wichita, Kan., agreed to buy the 220,000 b/d North Pole refinery, two petroleum terminals in Anchorage and Fairbanks, and the crude oil and refined products inventories. Flint Hills is a wholly owned subsidiary of Koch Industries Inc., Wichita.
--Koch Alaska Pipeline Co. LLC, a subsidiary of Koch Pipeline Co. LP, agreed to buy Williams' 3% interest in the Trans Alaska Pipeline System.
--Holiday Stationstores, Minneapolis, agreed to purchase 26 convenience stores.
The transactions, subject to regulators' approvals and conditions, are expected to close in the first quarter of 2004. Conditions include Flint Hills Resources' successful completion of a crude oil supply contract with the state of Alaska, requiring legislative approval.
The TAPS interest also is subject to preferential purchase rights by the other owners in the pipeline system.