TOLEDO, Ohio — BP is selling its remaining 50% stake in the BP-Husky Toledo Refinery to a Canadian company.
Calgary-based Cenovus announced Monday it will pay $300 million for BP's remaining stake in the refinery. Cenovus already owns the other 50%.
Per terms of the deal, Cenovus will also pay for the value of inventory and take over operations when the transaction closes, which is expected to happen later this year. BP and Cenovus will enter into a multi-year product supply agreement.
"We are proud of the business we have built in Toledo, which has provided thousands of good-paying jobs and made significant contributions to Ohio's economy and America's energy security for decades," BP America Chairman and President Dave Lawler said. "As our partner in Ohio, Cenovus is ideally placed to take this important business into the future."
The refinery, located on Cedar Point Road in Oregon, has been running for over 100 years. It can process up to 160,000 barrels of crude oil per day.
More than 580 BP refinery workers are expected to become Cenovus employees at closing, according to a news release. A Cenovus spokesperson later told WTOL 11 that job offers will be extended to "all current employees who work at or primarily support the refinery."
"I am incredibly proud of the people who safely operate this refinery every day," BP-Husky Vice President Des Gillen said. "Their unwavering dedication and expertise have helped provide a strong foundation for the future of this facility, which will continue to provide jobs in this community and energy for this region for years to come."
In June, BP agreed to sell its interest in the Sunrise oil sands project in Alberta, Canada, to Cenovus. When that deal is finalized, BP will no longer have stake in oil sands production and will shift its focus to offshore growth in Canada.
BP still has ownership stake the Whiting refinery in Indiana and Cherry Point refinery in Washington. The company is reshaping operations and attempting to cut greenhouse gas emissions to placate investors.
With the acquisition of the Toledo refinery, Cenovus' total refining capacity will increase to 740,000 barrels per day. The company also operates the refinery in Lima.