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Tesoro sells Hawaii refinery to Houston-based company

By Star-Advertiser Staff

LAST UPDATED: 12:57 p.m. HST, Jun 17, 2013

Tesoro Corp. said today it has signed an agreement with Houston-based Par Petroleum Corp. to sell all of its interest in Tesoro Hawaii, LLC, which operates the 94,000 barrel per day Kapolei refinery, retail stations and associated logistical assets.

As part of the agreement, Par Petroleum intends to operate the assets as an integrated refining, logistics and retail system, Tesoro said in a news release.

Par Petroleum will pay $75 million for the operations, plus the market value of net working capital valued at about $225 million to $275 million, according to the release. Also included is an “earn out” arrangement payable over three years based on the performance of the refinery.

Tesoro said it hopes to close the deal by the third quarter of this year, subject to regulatory approval.

Par Petroleum was formed in August last year when the company, formerly known as Delta Petroleum Corp., emerged from Chapter 11 bankruptcy with the new name. Par is primarily focused on finding and developing natural gas reserves from unconventional gas reservoirs within the Rocky Mountain Region, according to its website.

Gov. Neil Abercrombie told reporters today, “I talked to Mr. Goff (Tesoro CEO Greg Goff) earlier today and we’ve been in contact all along, hoping to have a positive outcome. Obviously I don’t have the working details of the sale of Tesoro, but we are in touch with the new folks and every indication I have is that there will be a smooth transition and we’re going to be able to keep the refinery going.

“That means not just that jobs are (still) going but we’ll have some continuity at least in the production and distribution right now for energy purposes and it gives us some breathing room in terms of trying to determine the energy future both for importation – manufacturing of energy, if you will – and it’s distribution here in Hawaii.”

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primo1 wrote:
Good news for Tesoro employees.
on June 17,2013 | 11:47AM
allie wrote:
hurray! I just hope that the sale is for real and is concluded successfully.
on June 17,2013 | 01:21PM
ya_think wrote:
Par Petroleum was formed in August last year when the company, formerly known as Delta Petroleum Corp., emerged from Chapter 11 bankruptcy with the new name. And yet they can come up with 300/400 million to buy Tesoro?? Something smells here.......
on June 17,2013 | 11:58AM
allie wrote:
borrowed money
on June 17,2013 | 01:21PM
serious wrote:
Exactly, allie, money is cheap. This is the time to borrow and buy. And a Texas company from a Republican state. I wonder if they ever heard of the Jones Act?
on June 17,2013 | 01:45PM
iwanaknow wrote:
After a while when this new company finds how hard it is to do Business in Hawaii, they will put lipstick on the pig and then try to sell it (again). Texas is very anti-union........will Hawaii's Unions be strong? time will tell.
on June 17,2013 | 02:23PM
allie wrote:
on June 17,2013 | 03:14PM
shanik wrote:
never underestimate stupid money
on June 17,2013 | 02:24PM
Ken_Conklin wrote:
Splelung cirrecshun. The last six words in the article are: "and it’s distribution here in Hawaii"

The word after "and" should not have an apostrophe. For that particular word, an apostrophe indicates a contraction of "it is" and not the possession of something by "it." My teacher Mrs. Cavanaugh will now be proud of me.

on June 17,2013 | 02:57PM
localguy wrote:
Tesoro employees are hardly out of the woods. Wait for a year and see how many still have their jobs. Many times after making a purchase like this the buying company realizes the overhead is way too high and starts making cutbacks. Time will tell.
on June 17,2013 | 02:58PM
cojef wrote:
Good luck, they gonna need 'em! It's tough ooing business in the Nei.
on June 17,2013 | 04:03PM
tiki886 wrote:
Par is a new company but Delta was located in Denver, CO and emerged from BK with a minority partnership in PAR. Laramie Energy II, also a Denver based company has the majority ownership of PAR. PAR bought SEACOR Energy which is located in Houston, TX and changed the name of the acquisition to PAR PETROLEUM CORP.



on June 17,2013 | 04:05PM
BluesBreaker wrote:
Good research. Well done.
on June 17,2013 | 04:31PM
tiki886 wrote:
About Par Petroleum Corporation: The Company is a Houston-based company that manages and maintains interests in a wide variety of energy-related assets, including natural gas assets located in the Piceance Basin.

The sale from Tesoro and Par still hasn't been completed subject to SEC or other government bureaucrats. But the problem is Hawaii still hasn't allowed the PUC to allowed HECO to convert to LNG yet. Some political hurdles still need to be overcome. Another EIS that squashed the Hawaii Super Ferry can easily stop this sale from happening.

If you google Delta's website, one of their forte was transportation of LNG to the islands of the Caribbean. Ocean transport, Reliable Storage, Ultra Clean Fuel for Electricity Generation, Clean LPN for Home and Business, etc.


on June 17,2013 | 05:40PM
OldDiver wrote:
Is HECO even interested in converting to LNG?
on June 17,2013 | 06:44PM
tiki886 wrote:
HECO is a government monopoly controlled by the Public Utilities Commission which in turn is influenced and appointed by POLITICIANS with an agenda!!!!.

The same agenda that Jeff Mikiluna of Blue Planet promotes!

on June 17,2013 | 09:09PM
78R8R wrote:
Almost sounds like Neil thinks he should get credit for something.
on June 17,2013 | 08:48PM
tiki886 wrote:
He should get credit for driving a checkered yellow cab as a long haired h i p p i e cab driver.
on June 17,2013 | 09:15PM
beachbum11 wrote:
With Ken C as his fare. LOL
on June 17,2013 | 09:41PM
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