Par Petroleum Corp. Inks Deal On Purchase of Tesoro Hawaii LLC
Acquired Tesoro Hawaii LLC and assets including 94,000 bbl/d-capacity refinery.
Hawaii Pacific Energy LLC, a subsidiary of Par Petroleum Corp., has completed its acquisition of Tesoro Hawaii LLC from Tesoro Corp., the company announced Sept. 25.
The purchase price is $75 million in cash, plus market value of net working capital and a contingent earnout payment of up to $40 million.
The acquired assets include a 94,000 barrel per day-capacity refinery; storage capacity for 2.4 million barrels of crude oil and 2.5 million barrels of refined products; and related logistics asset including five refined product terminals, 27 miles of pipelines and a single point mooring terminal.
With the deal in place, HPE has rights to sell gasoline through a network of 31 Tesoro-branded retail stations in Hawaii. Tesoro Hawaii, which will be renamed Hawaii Independent Energy LLC, will operate as a separate wholly-owned subsidiary of Par Petroleum and will be headquartered in Oahu, Hawaii.
The refinery produces gasoline, jet fuel, high sulfur diesel, low sulfur fuel oil and high sulfur fuel oil, and is a leading supplier of ultra-low sulfur diesel to the Hawaiian Islands.
“We are looking forward to being a reliable and productive member of the Hawaii business community, and we have the right team to optimize this asset,” said Will Monteleone, chairman of the Board of Directors and chief executive officer of Par Petroleum.
“I have to recognize the employees on the Islands who we have come to know. Despite the uncertainty at the refinery over the past two years, they have maintained operational excellence and have performed at, or exceeded, industry safety metrics,” Monteleone said.