Par Petroleum Corporation says it has agreed to buy Tesoro Hawaii. The Houston based company says it reached a definitive agreement to acquire Tesoro Hawaii for $75 million plus the value of Tesoro's other assets. That would bring the total sales price to between $300 to $350-million.
According to Par Petroleum, the sale is subject to certain closing costs including the successful restart of the refinery. The company says Tesoro has five terminals, 27 miles of pipelines and 31 retail assets across Oahu, Maui and the Big Island.
Par Petroleum says local gas stations would remain under the Tesoro brand. The company's CEO says Hawaii is a great fit.
"We have found in Tesoro Hawaii a great company with outstanding assets and a superb management team and employee base," says Will Monteleone, Par Petroleum CEO.
"While the Hawaii operations do not align with our (Tesoro's) strategic focus, we believe they offer a great opportunity for Par Petroleum," says Gregg Goff, Tesoro CEO.
Meanwhile, Gov. Neil Abercrombie weighed in when asked what will happen to Tesoro's current employees.
"We have to see exactly what direction the new ownership is going to take the refinery, but every indication that I have is that those who are working there now in all likelihood and great measure will still be working there," says the governor.
Members from Hawaii's congressional delegation were quick to respond to the news.
"As Hawaii's largest refinery, this facility is an important part of Hawaii's energy landscape and this action will help maintain the stability of the state's petroleum production market," says U.S Sen. Mazie Hirono.
"I am pleased to hear that Tesoro has found a buyer that will continue its operations," says Colleen Hanabusa, U.S representative.
"This is encouraging news for Hawaii's economy and for the workers at Tesoro," says Brian Schatz, U.S senator.
Par Petroleum Corporation was formerly known as Delta Petroleum Corporation based in Denver. The company filed for Chapter 11 bankruptcy protection two years ago and underwent a financial restructuring. Last August, it emerged from bankruptcy as Par Petroleum Corporation.
Tesoro plans on completing this sale in the coming months.