BP Plans to Sell Texas City, California Oil Refineries

BP Plc, the largest oil and natural gas producer in the U.S., plans to sell its Texas City and Carson refineries to focus on units able to process heavy crude and produce more diesel.

The company expects to complete the sale of the refineries in Texas and the one near Los Angeles along with marketing assets in southern California, Arizona and Nevada by the end of 2012, London-based BP said today in a statement.

It plans to focus on refining and marketing networks in the country based around the Whiting, Indiana and Cherry Point, Washington refineries and its 50 percent share in the Toledo, Ohio plant. They have “greater flexibility to refine a range of crude oils including heavy grades, and on average are more diesel-capable than BP’s current portfolio,” the company said.

The U.K. producer plans to sell $30 billion in assets by the end of the year to help to pay the costs of the oil spill in the Gulf of Mexico, the worst in the U.S. BP has so far disposed about $22 billion in assets, it said today in a separate statement.

The Texas City refinery, BP’s largest in the U.S., is able to handle 475,000 barrels of oil daily. The Carson refinery has a daily processing capacity of 266,000 barrels, according to data compiled by Bloomberg.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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