|Tesoro to sell Hawaii operations|
|Deal set to include the sale of Tesoro's fuel transportation network and bunker-producing refinery.
|Updated on 11 Jan 2012 07:06 GMT
|Tesoro Corporation has announced its plan to sell its Hawaii operations, including the 94,000 barrel-per-day (bpd) bunker-producing Kapolei refinery, operations at 32 retail stations and all associated logistical assets.
"Following a comprehensive analysis, we’ve determined that our business in Hawaii does not align with our strategic focus on the Mid-Continent and West Coast, and can provide greater value for a company that will invest in the business and employees," said Greg Goff, president and CEO of Tesoro.
"While the Hawaii business is no longer in line with our vision for Tesoro’s future, there is no question that it offers value for the right investor," added Goff.
As the leading supplier of transportation fuels in Hawaii, Tesoro plays a key role in meeting the state’s demand for marine and jet fuels. Crude oil at the Kapolei plant is processed to make ship fuel, gasoline, diesel, jet fuel, asphalt and fuel oil for electrical generation.
Tesoro Hawaii distributes refined products statewide. On Oahu, pipelines from the Kapolei refinery feed terminals at Honolulu International Airport, Honolulu Harbor and military installations. Pipelines also deliver products to Kalaeloa Barbers Point Harbor, where they are transferred to ships and barges that supply the "Neighbor Islands". Gasoline and diesel are sold through a network of Tesoro-branded retail stations on Oahu, Maui and the Big Island, and through distributors.
The Kapolei plant includes:
* Hydrocracking refinery.
* Network of retail stations.
* Deep draft single point mooring facility for crude and product movements.
* Proprietary pipelines with connections to hubs such as Honolulu International Airport, the military fuel depot and Barbers Point inter island barge harbour.
* Terminal access and barge operations to supply the major outlying islands
The company said it anticipates completing the sale no sooner than the second half of 2012, subject to regulatory and other approvals.