BP Sells Carson and ARCO Retail Network to Tesoro image

BP announced it will sell Carson and other California assets to Tesoro Corporation for $2.5 billion, part of the company’s US fuels business reshape plan.

“Today’s announcement is a significant step in the strategic refocusing of our US fuels business,” said Iain Conn, chief executive of BP’s global refining and marketing business.

Therefore Tesoro will buy Carson, the 266,000 barrel per day refinery located near Los Angeles, the ARCO retail marketing network located in South California, Nevada and Arizona, and other associated logistics network of pipelines and storage terminals. The end of the deal is to be reached by the middle of 2013.

After selling the ARCO retail brand rights to Tesoro, BP plans to exclusively license those rights back and continue to provide transportation fuels at its Cherry Point, Washington refinery. In 2011 BP was announcing its plans to refocus its marketing and refining business on its refineries located in northern US and look for buyers for Carson and the Texas City Refinery in Texas.

“We are pleased to be delivering on the plan we announced last year and when complete we will have a smaller, but well-positioned and very competitive portfolio of refining and marketing businesses in the US,” Conn added.