Par Petroleum subsidiary acquires Tesoro Hawaii

Par Petroleum has announced that its subsidiary Hawaii Pacific Energy (HPE) has completed the approximately $75m acquisition of Tesoro Hawaii. The company will also pay approximately $40m for three years, based on certain performance metrics.

Tesoro Hawaii, which is expected to be re-named Hawaii Independent Energy, will be operated as a separate wholly-owned subsidiary of Par Petroleum.

The acquired assets include a refinery, which has a throughput capacity of around 94,000 barrels per day, 2.4 million barrels of crude oil storage and 2.5 million barrels of refined products storage.

The refinery includes process units such as crude distillation, vacuum distillation, hydrocracking, naphtha hydrotreating, reforming and visbreaking. It produces gasoline, jet fuel, high sulfur diesel, low sulfur fuel oil and high sulfur fuel oil.

The acquisition also includes logistics assets, which comprise five refined product terminals, 27 miles of pipelines and a single point mooring terminal.

In addition, HPE has obtained the rights to sell gasoline through 31 Tesoro-branded retail stations in Hawaii.

Par Petroleum board chairman and CEO Will Monteleone said that the company intends to be a reliable and productive member of the Hawaii business community.

"I have to recognise the employees on the Islands who we have come to know," Monteleone added. "Despite the uncertainty at the refinery over the past two years, they have maintained operational excellence and have performed at, or exceeded, industry safety metrics."