Amoco Oil Co. is exploring the possibility of selling its 42,000 b/d Salt Lake City refinery and related marketing operations.
Amoco said the move stems from an analysis of its business objectives, future capital requirements, and the need to deploy its capital in areas of the greatest strategic importance to the company.
Randall L. Couch, refinery manager, said, "Although the refinery and related assets are a profitable operation, they are on the fringe of Amoco's primary marketing and refining territory and may provide greater value to a company with a stronger focus in the region."
Couch expects the Salt Lake City operations to prove attractive to Potential buyers.
"By combining the 42,000 b/d refinery, marketing terminals in Salt Lake City and Boise and Burley, Ida., and 39 Utah Rainbo retail gasoline outlets, we are presenting the purchaser with an opportunity to gain a significant presence in the Utah-Idaho market," he said.
Morgan Stanley will advise Amoco in such a transaction.
However, Couch noted, if a sale is not completed Amoco will continue to operate the assets as a profitable business.
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