UK-headed global oil, gas, and energy major bp plc has announced that it has reached an agreement to sell its 50 percent interest in the bp-Husky Toledo Refinery in Ohio (OH) in the United States (US) to Canada-headed Cenovus Energy Inc (Cenovus), its joint venture partner in the facility.
Under the terms of the deal, Cenovus will pay US$300 million for bp’s stake in the refinery, plus the value of inventory, and take over operations when the transaction closes, which is expected to occur later in 2022.
bp and Cenovus will also enter into a multi-year product supply agreement.
The bp-operated refinery, which can process up to 160 000 barrels of crude oil per day, has been an important part of the region’s economy for more than 100 years, supporting jobs and safely supplying gasoline, diesel, and other fuels and products.
We are proud of the business we have built in Toledo, which has provided thousands of good-paying jobs and made significant contributions to Ohio’s economy and America’s energy security for decades. As our partner in Ohio, Cenovus is ideally placed to take this important business into the future, said Dave Lawler, Chairman, and President of bp America.
Reshape North American portfolio
The announcement follows another recent deal with Cenovus that, taken together, will help “reshape bp’s North American oil and gas portfolio for long-term profitable growth.”
In June, bp entered into an agreement to sell its interest in the Sunrise oil sands project in Alberta (AB), Canada, to Cenovus and agreed to acquire Cenovus’s interest in the Bay du Nord project offshore Newfoundland and Labrador (NL).
Following the close of that deal, also expected in 2022, bp will no longer have interests in oil sands production and will shift its focus to future potential offshore growth in Canada.
In the US, after divesting its stake in the bp-Husky Toledo Refinery, bp’s refining portfolio will reduce from three to two facilities.
Going forward, bp will focus investment on its Whiting refinery in Indiana (IN) and Cherry Point refinery in Washington state (WA), which are strategically positioned to serve customers in the Midwest and Pacific Northwest.
bp currently operates seven refineries globally and has the net capacity to refine 0.8 million barrels/day in the US and 1.6 million barrels/day around the world.
I am incredibly proud of the people who safely operate this refinery every day. Their unwavering dedication and expertise have helped provide a strong foundation for the future of this facility, which will continue to provide jobs in this community and energy for this region for years to come, said Des Gillen, VP of bp-Husky Toledo Refinery.