Chevron completes first bid round on British Columbia refinery

EghtesadOnline: Chevron Corp completed an initial round of bidding on its Burnaby, British Columbia, refinery late last week, three people familiar with the process said on Tuesday.

News ID: ۷۷۰۵۲۱

19 October 2016

The refinery, located east of Vancouver, can process 52,000 barrels of oil a day. It does not process bitumen, the heavy, tar-like substance extracted from Canada's oil sands, and so it might be less attractive to Canadian producers, the people said.

Chevron said its "expression of interest process" is focused on the potential sale of refining and marketing assets in British Columbia, excluding Chevron Canada Ltd’s lubricants business, according to Reuters.

Tesoro Corp is among the bidders, the people said. The refinery and associated retail gasoline stations are being offered together, making it potentially more attractive for Tesoro, which has a retail arm.

A spokeswoman for Tesoro declined to comment, saying the company constantly reviews its portfolio.

Par Pacific Holdings, based in Houston, which was seen as a possible contender for the plant, is not pursuing the refinery, according to one of the people.

Reuters previously reported that Chevron had retained Goldman Sachs to sell the plant. Chevron is currently divesting several smaller refineries that are not seen as core assets.

Chevron is expected to close on a sale of its Kapolei, Hawaii, refinery to One Rock Capital Partners on Nov. 1, according to two of the people. Chevron is also seeking a buyer for a refinery in South Africa.