LA has been an oil town for a long time, but soon it's going to be a Texas oil town. According to the OC Register, Texas-based Tesoro Corp. has completed a $2.5 billion deal with gulf-ruiners BP to purchase, among other things, the latter's massive oil refinery in Carson. With the Carson refinery added to the Tesoro refinery in Wilmington, Tesoro becomes the largest oil refiner on the West Coast--when the deal is complete, Tesoro will produce 363,000 barrels of oil per day at their Southern California refineries. But wait, there's more. With the deal, Tesoro also acquires BP's 800 dealer-operated Arco gas stations in California, Arizona, and Nevada (there are 100 Arco stations in Orange County alone). Because Tesoro also will buy the marketing rights to those stations, it's possible that Southern Californians could look up and see a lot fewer Arco signs in the near future (Tesoro owns the Tesoro, Shell, and USA Gasoline names, and has already begun a process to transform nearly 250 Arco Stations to the USA Gasoline brand).
But wait, there's even more: "The deal also includes three marine terminals, four land storage terminals, over 100 miles of pipeline, including one connected to Los Angeles International Airport, and four product marketing terminals. BP also is selling a co-generation facility, which provides electricity to the Carson refinery, and a plant that upgrades coke from the Carson refinery for use by the aluminum industry." Last year, BP announced a plan to sell the Arco brand and "divest its West Coast and Texas City operations to concentrate on its northern U.S. refineries."
The sale is expected to take until the middle of next year to close.
· Tesoro buys BP refinery, Arco stations [OC Register]