Skip to main content

Cenovus Energy Inc. CVE-T will buy the remaining 50% stake it does not already own in Ohio-based BP-Husky Toledo Refinery for $300 million from British energy firm BP PLC, the Canadian company said on Monday.

The deal marks a continuation of BP’s reshaping of its North American oil and gas operations, as it tries to cut its greenhouse gas emissions to appease investors. Cenovus in June bought out BP’s 50% interest in the Sunrise oil sands, where it was already the operator.

Cenovus said the Toledo refinery recently completed a major, once in five years turnaround, and the deal will bring company’s total refining capacity to 740,000 barrels per day.

“Fully owning the Toledo refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities,” Alex Pourbaix, Cenovus’s chief executive officer, said in a statement.

The Toledo refinery can process up to  160,000 barrels of crude oil each day, providing the Midwest with gasoline, diesel, jet fuel, propane, asphalt, and other products.

“Upon first glance, the $300-million cash payment for 50% of Toledo is less than we would have expected,” Greg Pardy, head of global energy research at RBC Dominion Securities said in a note.

In 2008, Husky Energy Inc acquired a 50% stake in Toledo refinery, owned by BP, forming a joint venture. The stake then moved to Calgary-based Cenovus, when it combined with Husky in 2021.

Following the disposal of its stake in Toledo, BP’s refining operations in the United States will reduce to two facilities from three.

BP said, going forward, it will focus on its Whiting refinery in Indiana and Cherry Point refinery in Washington, which are positioned to serve customers in the Midwest and Pacific Northwest.

With the latest deal, which is expected to close before the end of 2022, Cenovus expects to realize synergies over the next few years.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 3:46pm EDT.

SymbolName% changeLast
CVE-T
Cenovus Energy Inc
+0.48%27.06

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe