HOUSTON, Oct 20 (Reuters) – Exxon Mobil Corp (XOM.N) agreed on Thursday to sell its Billings, Montana refinery and related pipeline properties to Par Pacific Holdings Inc (PARR.N) for $310 million. dollars.
The sale caps a years-long effort by the U.S. oil giant to further shrink its refining footprint and focus production at plants along the U.S. Gulf Coast and in the Midwest. He also sold oil-producing properties to boost returns.
“ExxonMobil is focused on investing in facilities where we can manufacture higher value products such as lubricants and chemicals,” said Karen McKee, head of the oil company’s product solutions unit.
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The deal for the 63,000 barrel per day refinery is expected to close in the second quarter of 2023, Exxon said in a statement.
Par Pacific was one of several independent refiners monitoring the plant and investing some of this year’s record refining profits to expand its assets, according to people familiar with the matter.
Profit margins for processing crude into gasoline, diesel and jet fuel hit five-year highs in the United States earlier this year, which helped drive sales. Increased travel and fewer refineries due to pandemic shutdowns pushed the average U.S. retail gasoline price to $3.84 a gallon this week from $3.36 a year ago. year.
The sale includes the Silvertip Pipeline, Exxon’s interest in the Yellowstone Pipeline and Yellowstone Energy LP and its product terminal interests in Montana and Washington.
As part of the agreement, Par Pacific will continue to supply fuel to Exxon and Mobil stations in the area.
Exxon brought the Billings facility to market as part of a plan to reduce its U.S. refining footprint at three Gulf Coast refineries – in Baton Rouge, Louisiana and Baytown and Beaumont , Texas – and a 251,800 bpd refinery in Joliet, Illinois.
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Reporting by Erwin Seba; Editing by Paul Simao
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