  |
|
Tesoro buys US refinery, 250 gasoline stations from Shell
AFP
WASHINGTON
Petroleumworld.com 01 30 06US energy group Tesoro Corporation said Monday it agreed to buy an oil refinery, an energy terminal and 250 gasoline stations in California from Anglo-Dutch Royal Dutch Shell for 1.6 billion dollars.
Tesoro said in a statement that it hopes to close the deal in the second quarter of the year, and that it also expects to pay between 180 and 200 million dollars to acquire Shell's petroleum stocks when the deal is finalized.
The Texas-based energy group also said separately that it was acquiring 140 USA Petroleum gasoline stations, mainly situated in California, and an energy terminal in New Mexico for 277 million dollars.
The addition of a total 390 gasoline stations to Tesoro's portfolio will significantly boost its retail network. The firm currently runs over 450 branded gasoline stations, according to its website.
"These assets are a tremendous complement to our existing operations on the West Coast and will be immediately accretive to our earnings and cash flow," said Tesoro chief executive Bruce Smith.
Shell's Wilmington refinery, just south of Los Angeles, refines heavy, sour crude into clean fuels for California's stringent market and has a capacity of 100,000 barrels per day.
Tesoro said it will continue operating the Shell stations under the Shell brand as part of the deal.
Shell said it had been advised by Tesoro that it intends to offer employment to most, if not all, of about 500 affected Shell employees at the refinery, the Wilmington products terminal and across the retail network.
Tesoro firm made the announcements as it also unveiled its fourth-quarter earnings. Tesoro said it booked net profits of 158 million dollars, 2.28 dollars per share, during the quarter compared with a year ago.
AFP 29 1552 GMT 01 07
Copyright© 1999 AFP. All Rights Reserved.
Your
feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com
Any
question or suggestions, please write to:
editor@petroleumworld.com
Best
Viewed with IE
5.01+
Windows
NT 4.0, '95, '98 and ME +/ 800x600 pixels