Murphy Oil acquires ethanol plant
A subsidiary of Murphy Oil Corp. has purchased a corn-based ethanol plant in Hankinson, ND, for $92 million.
By OGJ editors
HOUSTON, Oct. 2 -- A subsidiary of Murphy Oil Corp. has purchased a corn-based ethanol plant in Hankinson, ND, for $92 million.
Additionally, an estimated $15 million in working capital will be invested into the facility, Murphy Oil said. The plant’s production capacity was 110 million gal/year before it was idled in October 2008.
David M. Wood, Murphy Oil president and chief executive officer, said the acquisition will supplement Murphy Oil’s growing fuels business.
“It also marks our initial entry into the manufacture of biofuels,” Wood said. He cited current ethanol mandates and the company’s subsequent blending needs as the reason for Murphy to want “a presence in the supply chain.”
Wood said he expects to see ethanol production “shortly,” noting that the plant is near a feedstock supply and has accessible rail service for carrying the finished product.