Oil giant BP nets $2.5bn payday from sale of Californian refinery

BP has sold its Californian oil refinery to a Texan-based refinery firm for $2.5bn, the oil major announced yesterday.

The sale, to Tesoro Corporation, is the latest move to restructure its US business, which has suffered since the Deepwater Horizon oil spill in 2010.

Tesoro will acquire the 266,000 barrel-per-day refinery near Los Angeles, as well as a network of pipeline and storage terminals, subject to regulatory approval. It will also acquire the Arco retail brand network in Southern California, Arizona and Nevada.

The deal is expected to go through before the middle of next year.

Since the start of 2010, FTSE 100-listed BP has agreed $26.5bn of divestments. This sale is the latest in the programme to sell $38bn-worth of assets by the end of next year.

The sale follows the oil behemoth’s announcement that it is to sell off two gas processing plants in Texas – the Sunray and Hemphill plants – to Eagle Rock Energy Partners in a cash deal worth $227.5m.