ChevronTexaco to Sell Texas Refinery
EL PASO, Texas -- Reviving a deal put on hold during the 2001 merger that created the company, San Francisco-based ChevronTexaco Corp. said it would sell its El Paso, Texas, refinery and some related assets to its operating partner, Western Refining Co. LP of El Paso. Terms of the deal, which requires regulatory approval, were not disclosed.
Chevron Corp. and Western first agreed to the sale in 2000. It was suspended while Chevron completed the 2001 purchase of Texaco Inc. to form the nation's second-largest integrated oil company and the world's fourth-largest in terms of reserves.
Chevron's El Paso refinery and Western's adjoining facility have a combined crude throughput capacity of 104,000 barrels per day (bpd), which is smaller than most of the major Texas refineries and smaller than all but one of the East Bay's refineries.
Chevron has operated both plants since 1993 under an agreement with Western. The company opened its El Paso refinery in 1928. Western's plant was built by Texaco in 1931. Western acquired it from a bankrupt former owner in 1992. Under the agreement, a subsidiary -- Chevron Products Co. -- will sell its El Paso light products terminal to Western Refining. The agreement also calls for Chevron Pipe Line Co. to sell an associated crude oil pipeline system to Kaston Pipeline Co., LP, a subsidiary of Western Refining. The refinery, terminal and pipeline employs about 270 people, ChevronTexaco said.
"While the El Paso refinery has been an important part of our system for many years, our strategic focus is shifting," said Dave Reeves, president of Chevron Products Co. "This agreement advances our corporate objective of focusing investments in areas with the greatest potential for long-term growth and shareholder return, while enabling us to continue to provide our customers with premium products through our new business relationship with Western Refining."
Chevron Corp. and Western first agreed to the sale in 2000. It was suspended while Chevron completed the 2001 purchase of Texaco Inc. to form the nation's second-largest integrated oil company and the world's fourth-largest in terms of reserves.
Chevron's El Paso refinery and Western's adjoining facility have a combined crude throughput capacity of 104,000 barrels per day (bpd), which is smaller than most of the major Texas refineries and smaller than all but one of the East Bay's refineries.
Chevron has operated both plants since 1993 under an agreement with Western. The company opened its El Paso refinery in 1928. Western's plant was built by Texaco in 1931. Western acquired it from a bankrupt former owner in 1992. Under the agreement, a subsidiary -- Chevron Products Co. -- will sell its El Paso light products terminal to Western Refining. The agreement also calls for Chevron Pipe Line Co. to sell an associated crude oil pipeline system to Kaston Pipeline Co., LP, a subsidiary of Western Refining. The refinery, terminal and pipeline employs about 270 people, ChevronTexaco said.
"While the El Paso refinery has been an important part of our system for many years, our strategic focus is shifting," said Dave Reeves, president of Chevron Products Co. "This agreement advances our corporate objective of focusing investments in areas with the greatest potential for long-term growth and shareholder return, while enabling us to continue to provide our customers with premium products through our new business relationship with Western Refining."