Chevron Corp. subsidiary Chevron USA Inc. has entered a deal for the sale of its 54,000-b/d Kapolei, Ha., refinery on the island of Oahu and other associated Hawaiian downstream assets to Island Energy Services LLC, a subsidiary of One Rock Capital Partners LP, New York.
As part of the agreement, signed on Apr. 19, Island Energy Services will purchase the refinery as well as certain distribution and retail assets located in Hawaii, including Chevron’s interests in a network of 58 retail service stations, four product distribution terminals (on Oahu, Maui, Kauai, and Hawaii Island, respectively), pipeline distribution systems, and other unidentified downstream assets in the state, One Rock said.
Subject to customary regulatory approvals, the deal is due to be completed sometime during this year’s second half, One Rock said.
Neither Chevron nor One Rock disclosed details regarding the value of proposed transaction.
Chevron’s sale of the Hawaii refinery and related downstream assets comes as part of the company’s strategy to optimize its portfolio by divesting noncore holdings, which during 2015, included its interest in Caltex Australia Ltd. (OGJ Online, Mar. 27, 2015) and New Zealand Refining Co. (OGJ Online, May 29, 2015) downstream operations.
The company already was in the process of arranging a transaction to sell the Kapolei refinery earlier this year, John S. Weston, Chevron’s chairman and chief executive officer, said in a Jan. 29 quarterly earnings call.
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