Cenovus buys out remaining 50% share in Toledo Refinery

bp-Husky Toledo Refinery in Ohio
bp-Husky Toledo Refinery in Ohio(PRNewswire)
Published: Aug. 8, 2022 at 11:29 AM EDT
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TOLEDO, Ohio (WTVG) - The bp-Husky Toledo Refinery will now be fully owned by Cenovus Energy Inc., the compay announced Monday.

Through its U.S. operating business, Cenovus said it reached an agreement to purchase bp’s 50% interest in the facility. Cenovus has owned the other 50% of the refinery since its combination with Husky Energy in 2021.

Cenovus’s U.S. operating business will assume operatorship from bp upon closing of the transaction, which is expected before the end of 2022, dependent on the satisfaction of closing conditions. Total consideration includes $300 million in cash, subject to customary closing adjustments, plus the value of inventory. In addition, the parties have signed a multi-year product supply agreement.

“Fully owning the Toledo Refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “Operating the refinery will open up additional synergies and capital efficiency opportunities, including connectivity with our nearby Lima Refinery. This transaction solidifies our refining footprint in the U.S. Midwest and increases our ability to capture margin throughout the value chain.”

The transaction will give Cenovus an additional 80,000 barrels per day of downstream throughput capacity, including 45,000 bbls/d of heavy oil refining capacity.

“This refinery is a strategic addition to our Downstream business,” said Keith Chiasson, Cenovus’s Executive Vice-President, Downstream. “It has provided economic opportunities and critical energy products to the people of Ohio and surrounding areas for decades, and we look forward to continuing that tradition once we assume full ownership of the facility.”

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