Husky Energy Inc. has agreed to sell its light oil refinery in Prince George, B.C., for $215 million in cash plus adjustments to Tidewater Midstream and Infrastructure Ltd.
Tidewater may also pay up to an additional $60 million over two years under certain contingencies.
The refinery uses crude oil and condensate from B.C. and Alberta to produce about 12,000 barrels per day of low-sulphur gasoline and diesel fuel.
The two Calgary-based companies say the refinery91ÂãÁÄÊÓƵ™s employees will be retained after the deal closes.
Tidewater says the Prince George region is generally in short supply of refined products.
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Husky will buy 90 per cent of the refinery91ÂãÁÄÊÓƵ™s diesel and gasoline capacity for five years, with prices subject to review, to supply its Husky retail gasoline stations and Husky retail partners.
The sale is part of Husky91ÂãÁÄÊÓƵ™s plan to focus on a series of physically linked assets in Western Canada as well as its offshore oil and gas production off Canada91ÂãÁÄÊÓƵ™s East Coast and in the Asia-Pacific region.
Husky said Friday that it continues to conduct a strategic review of its retail and commercial fuels businesses.
The Canadian Press
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