Sunoco agrees to sell 85,000 bpd refinery to Holly Corporation

17-Apr-09

Sunoco, Inc., one of the leading US-based petrochemical manufacturers, has agreed to sell its 85,000 bpd refinery in Tulsa (Oklahoma, USA) to Holly Corporation for US$65 mln. The transaction will also include inventory attributable to the refinery which will be valued at market prices at closing. As per the agreement, Holly Corporation will invest in several necessary upgrades, including installation of a distillate treating system and sulfur recovery unit, to ensure the long-term viability and environmental compliance of the refinery. In November 2008, the company indicated that it would not proceed with a capital improvement project to upgrade the Tulsa refinery. Instead, Sunoco said it would continue to pursue a sale of the facility or convert it into a terminal by the end of 2009 if a buyer could not be found. Sunoco Chairman and Chief Executive Officer Lynn Elsenhans commented: "This sale demonstrates our continuing efforts to realign our portfolio of assets and represents another step toward improving our performance and competitiveness. It also keeps the refinery operating, provides for necessary upgrades to ensure the long-term viability of the facility, and protects approximately 400 jobs."