Tesoro announced that it was pulling out of the Hawaii market last year and earlier this year, after failing to find a buyer, planned down to shut down its refinery, one of two in Hawaii. It began sending out layoff notices this month.
With the sale, laoffs appear to have been averted.
From a Tesoro press release:
The sales price of the Hawaii operations is $75 million, plus the market value of net working capital, which is expected to be approximately $225 million to $275 million. Also included is an earn-out arrangement payable over three years up to $40 million based on consolidated gross margins. Tesoro anticipates completing the sale in the third quarter 2013, subject to regulatory approval. Aegis Energy Advisors Corp. and Norton Rose Fulbright advised Tesoro in thistransaction.
“We are pleased to have reached this positive outcome for the Company,” said Greg Goff, President and CEO. “While the Hawaii operations do not align with our strategic focus, we believe they offer a great opportunity for Par Petroleum.”
“This is encouraging news for Hawaii’s economy and for the workers at Tesoro,” said Senator Brian Schatz. “We have been in constant contact with Tesoro Corporation about maintaining fuel security in our state and working hard to ensure that the workers at the refinery keep their jobs. We thank Par Corporation for being willing to invest in a refining operation as a critical component to Hawaii’s economy. This will help with the availability of jet fuel, diesel fuel and other refined products.”
Read Civil Beat’s previous coverage here:
Renewable Energy Push Could Hurt Refineries
What Tesoro’s Pull Out Means for Hawaii’s Energy Landscape
— Sophie Cocke
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