BP sells two US oil refineries for $677m

BP today sold two US refineries for $677 million

BP today sold two US refineries for $677 million. The group has sold the plants - in Mandan, North Dakota and Salt Lake City, Utah - to US counterpart Tesoro.

BP announced last year that it planned to sell the refineries, along with another one in Yorktown, Virginia, and reduce its US plants from eight to five.

The strategy behind the sell-off was to focus on refineries that were near customers, such as its Texas City, Texas facility, or aligned to core parts of the group such as the production of chemicals.

Both parties will now seek regulatory approval. Should that be granted BP expects the transaction to complete by the end of the year.

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As well the plants, included in the deal are associated pipelines, storage units, eight distribution terminals and 45 petrol stations.

Mr Robert Malone, BP's regional president for the western US, said: "We are delighted that Tesoro has recognised that these refineries and related operations are top performers, and that they plan to offer employment to all of the current workforce."

The deal will ramp up Tesoro's output, giving it five refineries with a combined capacity of 390,000 barrels of oil per day.

Tesoro currently operates a chain of 300 branded petrol stations in the US.

A spokeswoman was unable to say when the Virginia plant would be sold.