PHILADELPHIA--(BUSINESS WIRE)--Apr. 16, 2009--
Sunoco, Inc. (NYSE: SUN) said today that it reached an agreement to sell
its 85,000 barrel-per-day refinery in Tulsa, Okla., to Holly Corporation
(NYSE: HOC) for $65 million. The transaction will also include inventory
attributable to the refinery which will be valued at market prices at
Under the terms of the agreement, Holly Corporation agrees to invest in
several necessary upgrades, including installation of a distillate
treating system and sulfur recovery unit, to ensure the long-term
viability and environmental compliance of the refinery. In addition,
Holly Corporation assumes all obligations regarding remediation and
other operational issues.
The transaction is subject to normal conditions, such as regulatory and
other approvals, and is expected to close on June 1, 2009.
Sunoco had previously announced in November 2008 that it would not
proceed with a capital improvement project to upgrade the Tulsa
refinery. Instead, Sunoco said it would continue to pursue a sale of the
facility or convert it into a terminal by the end of 2009 if a buyer
could not be found.
Speaking on the transaction, Sunoco Chairman and Chief Executive Officer
Lynn Elsenhans said: “This sale demonstrates our continuing efforts to
realign our portfolio of assets and represents another step toward
improving our performance and competitiveness. It also keeps the
refinery operating, provides for necessary upgrades to ensure the
long-term viability of the facility, and protects approximately 400
jobs. We are grateful to the talented and dedicated employees at the
facility who made it successful for so many years. In addition, we thank
the public officials who supported our efforts to sell the refinery. We
appreciate their work on behalf of the company, the employees at the
facility, and the greater Tulsa community.”
The Tulsa refinery, which began production in 1913, became a part of
Sunoco’s refining system through a merger with Sunray DX in 1968.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading
manufacturer and marketer of petroleum and petrochemical products. With
910,000 barrels per day of refining capacity, approximately 4,700 retail
sites selling gasoline and convenience items, approximately 6,000 miles
of crude oil and refined product owned and operated pipelines and 43
product terminals, Sunoco is one of the largest independent
refiner-marketers in the United States. Sunoco is a significant
manufacturer of petrochemicals with annual sales of approximately five
billion pounds, largely chemical intermediates used to make fibers,
plastics, film and resins. Utilizing a unique, patented technology,
Sunoco’s cokemaking facilities in the United States have the capacity to
manufacture approximately 3.0 million tons annually of high-quality
metallurgical-grade coke for use in the steel industry. Sunoco also is
the operator of, and has an equity interest in, a 1.7 million
tons-per-year cokemaking facility in Vitoria, Brazil.
Source: Sunoco, Inc.
Thomas Golembeski (media) 215-977-6298
Diebold (investors) 215-977-6764