BP (NYSE:BP) to Sell Refinery to Tesoro (NYSE:TSO) for $2.5-B

Oil giant BP PLC Monday said it has reached agreement to sell its Carson, Calif., refinery and related logistics and marketing assets to Tesoro Corp. for $2.5-B in cash.

The deal will allow BP to focus operations and investments exclusively on its 3 northern US refineries, which are Crude Oil feedstock advantaged, and their large and important marketing businesses.

Under the agreement, which is subject to regulatory and other approvals, Tesoro will acquire the 266,000 BPD refinery near Los Angeles as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada.

The sale also includes BP's interests in associated cogeneration and coke calcining operations.

The closing is expected to happen before mid Y 2013.

The deal brings the total value of the divestments that BP has agreed since the beginning of Y 2010 to $26.5-B.

This is part of its previously announced program to divest $38-B of assets by the end of Y 2013.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.