Calumet Specialty Products Partners, L.P., based in Indianapolis, Ind., U.S.A., has completed the sale of its the Superior Refinery, a 50,000 barrel per day (bpd) refinery located in Superior, Wis., U.S.A. for a total consideration of USD492 million.
The Superior Refinery increases the Canadian integrated oil company’s downstream crude processing capacity to approximately 395,000 bpd, in line with the company’s growing production. Husky Energy currently produces around 320,000 bpd and aims to grow output to 400,000 bpd by 2021.
The Superior Refinery produces a slate of products that includes asphalt, gasoline, diesel fuel and heavy fuel oils. The transaction includes the acquisition of the refinery’s associated assets and logistics, including two asphalt terminals, two product terminals, a marine terminal, 3.6 million barrels of crude and product storage and a fuels and asphalt marketing business.
The total consideration included the sale price of USD435 million, and an additional USD57 million for net working capital, inventories and reimbursement of certain capital spending.
Husky Energy is retaining the existing workforce at the refinery, which can process Canadian heavy crude and light and medium barrels from Canada and the Bakken region and also boosts the company’s asphalt production capacity.
Husky Energy produces primarily heavy oil from oil sands and conventional operations in western Canada and the deal will help it manage exposure to lower global crude oil prices.
“Acquiring the Superior Refinery will increase Husky’s downstream crude processing capacity, keeping value-added processing in lockstep with our growing production,” said Husky Energy CEO Rob Peabody.
Calumet Specialty Products Partners is a master limited partnership and a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products; produces fuel products including gasoline, diesel and jet fuel; and provides oilfield services and products to customers throughout the United States.
Calumet Specialty Products operates 12 manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.