What’s that buzz? Tell me what is happening?
There appears to be hope that the Come-by-Chance oil refinery will be sold, ensuring that the rural economic engine continues to hum along.
The North Atlantic refinery is a 115,000 barrel per day hydrocracking refinery, optimally configured to process medium sour crude oil (24-34° API, 1-3% sulphur). As a Clean Fuels refinery, 100% of North Atlantic’s gasoline and ultra low sulphur diesel (ULSD) products meet or exceed current and future anticipated environmentally driven specifications.
VOCM is citing anonymous sources, supposedly in the know, who say the operation is about to be purchased by B.P. PLC. I heard (through the pipeline) a few weeks ago that B.P and Husky Energy were going to make a joint offer. I am curious to see if this turns out to be the case.
John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. has entered into a number of strategic opportunities with BP in the past enhancing his companies project execution skills, exploration, production and refining potential. I think the purchase would be a great opportunity for Husky to strengthen it’s position in the refining market and generate cash flow.
As well, Husky spent a lot of capital( $2 billion est) revamping the Toldeo refinery to process heavy crude to make up for the $23 per barrel discount against the U.S. crude benchmark, West Texas Intermediate.
Controlling more refinery opportunities for heavy Atlantic oil and bitumen makes a great deal of strategic sense with the Sunrise project coming on stream.
Husky already holds strategic partnerships with BP in the Alberta Tar sands and holds a 50 percent ownership interest with BP in a refinery at Toledo, Ohio.. Husky also owns and operates a refinery in Lima, Ohio, a refinery in Prince George, ethanol plants in Canada and has 512 retail stations in Canada.
The company holds interests in 20 exploration licenses and producing properties at Terra Nova and White Rose. Two new oil fields in at Bay du Nord and Harpoon in the Flemish Pass were discovered in 2013 with partner Statoil, near the previously announced Mizzen field.
Wouldn’t it be great to hear that the refinery is not only going to be purchased but upgraded to process heavy crude that could be supplied from our own offshore!