Valero Energy Corp. will buy Murphy Oil USA Inc.’s Meraux refinery and related logistics assets for $325 million plus inventories currently estimated at approximately $300 million.
The deal is expected to close in the fourth quarter.
The Meraux refinery is Murphy’s latest step in shedding its refinery business.
The Meraux refinery can refine 135,000 barrels of oil per day. The plant has a dock on the Mississippi River and pipeline capability to Collins, Miss. On the river, the distance is about 40 miles from the Valero St. Charles Refinery.
“Our plan is to integrate feedstocks and refined product blending with the St. Charles refinery, especially as our new 60,000 bpd hydrocracker is completed at St. Charles,” Valero Chairman and CEO Bill Klesse said in a news release. “The Meraux refinery adds more hydroprocessing capacity to our portfolio. It’s the right hardware in the right place.”