Superior refinery sold to Indiana firmIt’s unclear what the change in ownership might mean for the refinery and its roughly 156 employees. Calumet officials are expected to offer more details on their plans Tuesday.
By: John Myers, Duluth News Tribune
Murphy Oil Corp. has reached an agreement to sell its Superior refinery to Calumet Specialty Products Partners, an Indiana-based refiner and processer of specialty petroleum products.
The deal, announced Monday, exactly one year since the refinery was put up for sale, still must clear regulatory approval but is expected to be final by the end of September.
It’s unclear what the change in ownership might mean for the refinery and its roughly 156 employees. Calumet officials are expected to offer more details on their plans Tuesday.
According to a Calumet news release, the company acquired the refinery and “associated operating assets and inventories” for $475 million. According to a Murphy Oil release, the refinery itself went for $214 million.
The Superior refinery, the city’s biggest industrial facility and employer with a $100 million economic impact in 2010, has a capacity of between 34,000 and 45,000 barrels per day.
Calumet currently operates six plants including operations in Northwest Louisiana, Pennsylvania, Texas and Illinois. The Superior refinery produces gasoline, distillate, asphalt and specialty petroleum products that are marketed in the Midwest.
The new owners will get the Superior plant’s production plus Murphy’s regional distribution network as well as direct access to Canadian crude oil through the Enbridge Energy pipeline system that moves through Superior.
“We are pleased to announce our largest acquisition or expansion since our initial public offering,” said Calumet Vice Chairman and Chief Executive Officer Bill Grube. “The Superior refinery acquisition provides us greater scale and development potential to our refining business. The acquired assets will increase our current throughput capacity by 50 percent to approximately 135,000 barrels per day and will add beneficial geographical diversity to our assets.”
Murphy still looks to sell its remaining refineries in Meraux, La., and Milford Haven, Wales, as part of its plan to get out of the refining business to focus on exploration and production.