Island Energy finalizes deal for Chevron Hawaii refinery, downstream assets
Island Energy Services LLC, a subsidiary of One Rock Capital Partners LP, New York, has completed its acquisition of Chevron USA Inc.’s 54,000-b/d Kapolei, Ha., refinery on the island of Oahu and other associated Hawaiian downstream assets.
Island Energy Services LLC, a subsidiary of One Rock Capital Partners LP, New York, has completed its acquisition of Chevron USA Inc.’s 54,000-b/d Kapolei, Ha., refinery on the island of Oahu and other associated Hawaiian downstream assets (OGJ Online, Apr. 21, 2016).
With the Nov. 1 closing of the deal, Island Energy became full owner of the refinery as well as certain distribution and retail assets in Hawaii, including Chevron’s interests in a network of 58 retail outlets, four product distribution terminals (on Oahu, Maui, Kauai, and Hawaii Island, respectively), pipeline distribution systems, and other logistical assets in the state, One Rock said.
Among the 99% of Hawaii-based Chevron team members that have accepted Island Energy’s offer to remain with the company is Jon Mauer—a former 28-year Chevron executive and current Kapolei refinery manager—who will now continue on as Island Energy’s president and chief executive officer.
Alongside plans to improve operations at the refinery, Island Energy also will pursue opportunities to expand the business statewide, Mauer said.
While Mauer disclosed no further details regarding the future refinery improvement and business-expansion plans, he did confirm the company already is hiring additional employees to support its intention to grow.
Beginning in 2017, Island Energy said it will begin transitioning its newly acquired Chevron-branded retail outlets in Hawaii to Chevron’s Texaco brand, the company said.
One of Hawaii’s only two refineries, Island Energy’s Kapolei refinery processes mainly sweet crudes to produce a variety of finished products distributed throughout Hawaii via its recently purchased assets from Chevron.
On Oahu, the company transports gasoline, jet fuel, diesel, and naphtha along its two 23-mile pipelines directly to its Honolulu marine terminal at Honolulu Harbor, as well as jet fuel to the Hawaii Fueling Facilities Corp. airline consortium.
The Honolulu marine terminal, which also links to the company’s nearby Honolulu truck terminal at Iwilei, includes an offshore mooring facility that is capable of receiving and transporting waterborne crude shipments to storage tanks at the Kapolei refinery via two subsea lines.
The company also owns and uses pipelines that support terminals at Port Allen (Kauai), Kahului (Maui), and Hilo (Hawaii Island).
Contact Robert Brelsford at email@example.com.