You are here
CHICAGO -- Premcor Inc., a privately-held refining firm headed by former Tosco Corp. chief executive Thomas O'Malley, is considering buying the 286,000 barrel per day (bpd) refinery in Wood River, Ill., which is owned by Phillips Petroleum Co., an industry source said Monday.
"They've (Premcor) indicated that's their intent," the source told Reuters. Phillips and Premcor have not commented on the deal.
Premcor chief executive O'Malley has already made his mark by announcing last week the company plans to shut its 65,000 bpd Hartford, Illinois, refinery in October due to the high cost of meeting looming environmental standards.
Tosco, the company that O'Malley built into the top U.S. independent refiner, previously owned Wood River. O'Malley took over at Premcor in early February after selling Tosco to Phillips for about $7 billion in stock last year.
More than a year ago, Premcor permanently closed its 80,000 bpd Blue Island, Illinois, refinery also because of the high cost of meeting new environmental specifications. Premcor operates two other plants, the Port Arthur, Texas, facility with capacity of 250,000 bpd and the Lima, Ohio, refinery with capacity of 160,000 bpd. O'Malley expects both those plants to be able to meet the new fuel specifications in a timely manner, the report said.