ND0906115

Title: Valero Energy to Purchase Murphy Oil Refinery

Description: Murphy Oil?s Meraux refinery in Louisiana has a total throughput capacity of 135,000 barrels per day.

Page Content:

SAN ANTONIO ? Valero Energy Corporation announced last week that it has agreed to acquire Murphy Oil USA Inc.?s Meraux, La., refinery and related logistics assets for $325 million plus inventories currently estimated at approximately $300 million. The transaction is expected to be accretive to earnings upon closing. Valero plans to fund the transaction from available cash, and the transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals.�

The Meraux refinery has a total throughput capacity of 135,000 barrels per day with a 34,000 bpd hydrocracker and significant hydroprocessing capacity, which gives the refinery the ability to process medium sour crude and produce significant yields of premium products. The plant has a dock on the Mississippi River and pipeline capability to Collins, Miss. On the river, the distance is only about 40 miles from the Valero St. Charles Refinery.

?Our plan is to integrate feedstocks and refined product blending with the St. Charles refinery, especially as our new 60,000 bpd hydrocracker is completed at St. Charles,? said Valero Chairman and CEO Bill Klesse. ?The Meraux refinery adds more hydroprocessing capacity to our portfolio. It?s the right hardware in the right place.?

In addition to the refinery, the purchase price includes an adjacent product terminal, a 20 percent equity interest in the Collins Product Pipeline and T&M terminal, and a 3.2 percent interest in the Louisiana Offshore Oil Port (LOOP).

Content Subject: Corporate

Formatted Article Date: September 6, 2011

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