Murphy Oil to sell La. refinery to Valero for $625mn
9/2/2011 12:00:00 AM
Murphy Oil has agreed sell its 125,000 bpd refinery and related assets in Meraux, Louisiana, to Valero for $325 million in cash plus the value of hydrocarbon inventory, putting the overall sale value near $625 million.
The hydrocarbon inventory will be valued based on market prices at closing. Currently, that inventory is valued at around $300 million, Murphy said.
The sale is subject to customary regulatory approvals and conditions and is expected to close in the fourth quarter of 2011.
David M. Wood, Murphy CEO, said: “The announcement of the sale of Meraux is another execution step in our repositioning strategy to exit the refining business.
“We will now focus our attention on completing the sale of our assets in the UK,” he added.
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