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EL DORADO, Ark. -- Murphy Oil Corp. acquired a corn-based ethanol plant for $92 million, marking its first foray into biofuel manufacturing, the Associated Press reported.
"Given the current ethanol mandates and our subsequent blending needs, having more of a presence in the supply chain better balances our business," Murphy Oil President and CEO David Wood said in a statement.
The independent petroleum producer, refiner and marketer said it will also invest around $15 million in working capital into the ethanol plant in Hankinson, N.D., which has annual production capacity of 110 million gallons, but has been idle since October 2008.
According to a Reuters report, the deal will be financed primarily through non-recourse debt offered through the sellers.
Federal mandates require 12.95 billion gallons of biofuel to be blended into the nation's fuel supply in 2010, and 36 billion gallons by 2022.
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