BP is selling its refinery in Carson, Calif., and other West Coast assets, to Tesoro for $2.5 billion in cash. Other assets include pipelines, storage terminals, marine terminals and about 800 Arco-branded retail outlets in southern California, Arizona and Nevada.
BP has set a target of $38 billion in sales by the end of next year to help pay the costs of the disastrous oil spill in the Gulf of Mexico. To date, including a separate sale of gas processing plants in Texas, the company has sold or has agreed to sell assets worth $26.5 billion.
The Carson refinery, with a capacity of 266 million barrels per day, is adjacent to Tesoro’s Wilmington refinery. Combining the two is expected to cost $225 million but yield annual savings of about $250 million, Tesoro said.
Tesoro also will acquire BP’s 51 percent stake in a 400-megawatt gas cogeneration facility which supplies electricity to the Carson refinery and the local area.
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