ChevronTexaco
and Western Refining reach El Paso Refinery sale agreement
Posted: 3 June 2003
ChevronTexaco Corp. announced a definitive agreement to sell its
interest in its El Paso, Texas, refinery and certain associated
assets to Western Refining Co., L.P.
Under the agreement, Chevron Products Co, a ChevronTexaco company,
will also sell its El Paso light products terminal to Western Refining.
Since 1993, Chevron Products and Western Refining have had an operating
agreement whereby Chevron Products operates Western's part of the
90,000 barrel per day refinery complex.
The sale does not include Chevron Products' El Paso asphalt plant.
Chevron Products will continue to market its branded gasoline, asphalt
and other petroleum products throughout the area.
The agreement also calls for Chevron Pipe Line Co., a ChevronTexaco
company, to sell an associated crude oil pipeline system to Kaston
Pipeline Co., L.P., a subsidiary of Western Refining.
The sale is expected to close after all regulatory approvals and
financing are obtained. Financial details of the agreement were
not disclosed.
"While the El Paso refinery has been an important part of
our system for many years, our strategic focus is shifting,"
said Dave Reeves, president, Chevron Products Co.
"This agreement advances our corporate objective of focusing
investments in areas with the greatest potential for long-term growth
and shareholder return, while enabling us to continue to provide
our customers with premium products through our new business relationship
with Western Refining."
Western Refining President and owner Paul Foster said, "It
has been our desire for some time to buy the Chevron refinery and
associated pipeline assets, and we look forward to being the owner
and operator. Chevron and Western have had a great relationship
and we look forward to our new business relationship."
Chevron's El Paso Refinery began operations in 1928. Approximately
270 people are employed at the refinery, light products terminal
and crude oil pipeline system.
Cautionary Statement Relevant to Forward-Looking Information for
the Purpose of "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995.
This news release contains forward-looking statements about the
planned sale of ChevronTexaco's interests in the El Paso, Texas,
refinery and certain associated assets to Western Refining Co. L.P.
These statements include the expected closing date for the sale
and ChevronTexaco's future business activities in the El Paso area.
The statements are based on management's current expectations, estimates
and projections; are not guarantees of future performance; and are
subject to certain risks, uncertainties and other factors, some
of which are beyond the company's control and are difficult to predict.
Among the factors that could cause actual results to differ materially
are the length of time required to complete and the actual results
of due diligence activities by the companies; terms of the final
sales agreement; and general economic and political conditions.
You should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release.
Unless legally required, ChevronTexaco undertakes no obligation
to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
For more information see www.chevrontexaco.com.
Posted by Richard Price,
Editor Pipeline Magazine
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