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Murphy Oil sells Louisiana refinery

Murphy Oil Corp. announced today that it has entered into an asset purchase agreement pursuant to which its wholly-owned subsidiary, Murphy Oil USA, Inc., will sell its refinery in Meraux, Louisiana and related assets.

Murphy Oil Corp. announced today that it has entered into an asset purchase agreement pursuant to which its wholly-owned subsidiary, Murphy Oil USA, Inc., will sell its refinery in Meraux, Louisiana and related assets.

The Meraux Refinery is being acquired by a subsidiary of Valero Energy Corporation for a sales price of $325 million plus the value of hydrocarbon inventory, and subject to certain other adjustments, according to a news release issued by Murphy Oil. The hydrocarbon inventory will be valued based on market prices at closing -- about $300 million. The sale is subject to customary regulatory approvals and conditions and is expected to close in the fourth quarter of 2011.

"The announcement of the sale of Meraux is another execution step in our repositioning strategy to exit the refining business," said David M. Wood, Murphy's president and chief executive officer in a prepared statement. "We will now focus our attention on completing the sale of our assets in the U.K."

In July, Murphy Oil announced the pending sale of its Superior refinery to Calumet Specialty Products LP of Indianapolis. The Superior refinery sale is expected to be completed later this month.

Davis Polk & Wardwell LLP is acting as legal counsel to Murphy. Goldman, Sachs & Co. is acting as its financial adviser.

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