Categorized | Business, Energy

Tesoro plans to sell Hawaii operations including Kapolei refinery and 32 gas stations

MEDIA RELEASE

SAN ANTONIO, TX – January 10, 2012 – Tesoro Corporation (NYSE: TSO) today announced its plan to sell its Hawaii operations, including the 94 thousand barrel per day (mbpd) Kapolei refinery, operations at 32 retail stations and all associated logistical assets.

“Following a comprehensive analysis, we’ve determined that our business in Hawaii does not align with our strategic focus on the Mid-Continent and West Coast, and can provide greater value for a company that will invest in the business and employees,” said Greg Goff, president and CEO of Tesoro. “While the Hawaii business is no longer in line with our vision for Tesoro’s future, there is no question that it offers value for the right investor.”

The Kapolei refinery enjoys a favorable geographic position, excellent logistical infrastructure and an advantaged configuration that make it an attractive business for interested buyers. The refinery yield is distillate-focused and is complementary to the on-island demand for utility, jet and military fuels. The facility has the necessary logistics to support product movements to and from the U.S. West Coast or Pacific Rim markets, and is well positioned for participation in existing State of Hawaii and U.S. Department of Defense renewable fuels projects.

This is a fully integrated business which includes:

  • Advantaged hydrocracking refinery
  • Network of retail stations
  • Deep draft single point mooring facility for crude and product movements
  • Proprietary pipelines with connections to crucial business hubs such as Honolulu International Airport, the military fuel depot and Barbers Point inter island barge harbor
  • Terminal access and barge operations to supply the major outlying islands

Tesoro Hawaii indicated its operations are focused on continuing to meet all its business commitments during the marketing and sales process.

Tesoro Hawaii anticipates completing the sale no sooner than the second half of 2012, subject to regulatory and other approvals.

Governor Neil Abercrombie’s statement on the Tesoro announcement

Honolulu – Tesoro Corporation today announced its plan to sell its Hawai’i operations no sooner than the second half of 2012. Governor Neil Abercrombie released the following statement regarding the announcement:

“In recent years, I have indicated that refineries in Hawai’i would likely experience changes given the circumstances in the global market. Today I spoke with Tesoro President and CEO Gregory Goff who informed me that the company will sell its Hawai’i refinery in the upcoming months.”

“We will work with Tesoro and all key players, including the Pacific Command and the Congressional Delegation, in power and fuel production and distribution to ensure continuity of resources is provided during and after this sale.”

“Mr. Goff has assured me that the company is willing to consider use of its facilities for production of alternative energies and I am committed to working towards this goal.

“In the meantime, we must remind ourselves that the move towards alternative or renewable energies is essential to Hawai’i’s survival. Although my administration is committed to taking action in this direction, there must be an equal commitment by everyone – government, business, community, family, and individuals – to reduce our dependence on fossil fuels.”

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