The purchase marks a major expansion for Findlay, Ohio-based Marathon Petroleum. The refining company spun off from Houston-based Marathon Oil last year.
“This acquisition will make MPC the fourth-largest U.S. refiner in terms of refining capacity.”
Gary Heminger is president and CEO of Marathon Petroleum.
“These refining and related assets strategically complement our existing business and provide the immediate scale for us to expand our Marathon brand business even further in the Southeast.”
The Texas City refinery has a troubled history. A 2005 fire and explosion at the plant killed fifteen workers and injured nearly 200 others. BP has been trying to sell refining and other assets to help cover costs associated with the 2010 Deepwater Horizon explosion and oil spill. Andrew Lipow is an oil industry consultant based in Houston.
“It represents BP’s withdrawal from the Gulf Coast refining business and their concentration on refineries that are adjacent to the Canada-USA border.”
The Securities and Exchange Commission is closed for the Columbus Day holiday. BP and Marathon Petroleum will file the purchase and sale agreement when the SEC reopens on Tuesday. Subject to review, the companies expect to close the deal by the end of March next year.