Husky Energy is selling its Prince George Refinery to Tidewater Midstream and Infrastructure for $215 million in cash, plus a closing adjustment for inventory and a contingent payment of up to $60 million over two years.
The company said in a news release on Friday that the transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals.
The 12,000 barrel-per day Prince George Refinery, located in Prince George, B.C., processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products. As part of the sale, Husky will enter into a five-year agreement with Tidewater for refined products from the Prince George Refinery, said the energy company.
“We continue to deliver on Husky’s five-year plan outlined at our Investor Day in May, with an ongoing focus on capital discipline, consistent execution and increased margins,” said Rob Peabody, CEO of Husky, in a statement. “The plan is aimed at further enhancing the resiliency of the company.”
In the news release, Husky said it had previously announced it was considering selling the Prince George Refinery to focus on its integrated corridor and offshore businesses.
“The integrated corridor is a series of physically-linked assets that includes upstream thermal crude production, storage, committed pipeline capacity and refineries. The integrated corridor is designed to maximize margin capture, access to markets and optionality. The offshore business focuses on oil and gas production off Canada’s East Coast and in the Asia Pacific region,” it said.