Cenovus Energy completes purchase of bp’s stake in Toledo Refinery
Cenovus Energy Inc. has closed on the transaction to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio, U.S.A., effective February 28, 2023. Under the terms of the deal, Cenovus paid USD300 million for bp’s stake in the refinery, plus the value of inventory, and take over refinery operations when the transaction closed.
Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States.
Cenovus already owned 50% of the facility, and now owns 100% and assumes operatorship. Total consideration for the sale is approximately USD370 million after closing adjustments, including working capital. Cenovus and bp will also enter into a multi-year product supply agreement.
In August 2022, bp announced that it has reached an agreement to sell its 50% interest in the bp-Husky Toledo Refinery in Ohio to Calgary-based Cenovus, its joint venture partner in the facility.
The Toledo Refinery has 160,000 barrels per day (bpd) of throughput capacity, including about 90,000 bpd of heavy oil capacity, and increases Cenovus’s total downstream refining capacity to about 740,000 bpd. Cenovus expects the refinery will ramp to full rates by mid-second quarter.
On February 16, 2023, Cenovus Energy Inc. announced that as part of the company’s leadership succession plan, Alex Pourbaix will shift to the role of executive chair and Jon McKenzie, the company’s current executive vice-president & chief operating officer, will become president & chief executive officer.