Marathon completes BP refinery purchase

Marathon Petroleum Corp. has completed its purchase of BP’s 451,000-b/cd refinery at Texas City, Tex., and will rename it Galveston Bay Refinery (OGJ Online, Oct. 8, 2012).

The purchase price includes $598,000 cash, $1.1 billion for hydrocarbon inventory, and an earn-out payable over 6 years of $700,000 based on assumed future margins and throughput.

In addition to the high-conversion refinery, Marathon Petroleum acquires a 1,040-Mw cogeneration facility, four light product terminals in the US Southeast, retail marketing contract assignments for 1,200 branded sites selling 61,000 b/d of gasoline, three intrastate natural gas liquids pipelines originating at the refinery, and a 50,000 b/d allocation of BP's Colonial Pipeline Co. shipper history.

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