BP Products North America intends to sell its North Jacksonville petroleum bulk storage terminal early next year to Marathon Petroleum Co. LP, according to records filed with the St. Johns River Water Management District.
It is part of BP's plans to divest some assets to focus on exploration and what it says are its other strengths.
Property records the Jacksonville terminal occupies more than 50 acres at 2101 Zoo Parkway. It comprises two formerly separate terminals and occupies acreage on both sides of Zoo Parkway, which is known as Heckscher Drive for most of its length.
News of the sale was included in an Oct. 8 release by BP. The company announced it reached an agreement to sell its Texas City, Texas, refinery and part of its retail and logistics network in the Southeast U.S. to Marathon Petroleum Corp. for $2.5 billion.
"With today's agreement, the total value of the divestments that BP has agreed since the beginning of 2010 is now over $35 billion," BP announced.
BP said it expected the total to exceed $38 billion by the end of 2013.
Subject to regulatory and other approvals, Marathon Petroleum agreed to buy the 475,000 barrel-per-day refinery, associated natural gas liquid pipelines and four marketing terminals in the Southeast, which are in Jacksonville, Nashville and in Selma and Charlotte, N.C.
BP said the sale would reduce its presence in the Southeast U.S., but it "remains firmly committed to growing and strengthening our BP-branded retail network and the value of the BP brand east of the Rockies in partnership with BP-branded jobbers and dealers."
BP said it would continue to market in the Southeast U.S. through more than 100 retained jobbers and about 2,400 branded outlets.
It said it would continue to supply retained BP-branded customers through its logistics network, including the four divested product terminals.
Blanchard Terminal Co. LLC, a subsidiary of Marathon, will acquire ownership of and operate the Jacksonville terminal, according to a letter from Simon Richards with the BP North America program management office to the district.
The ownership transfer could take place Jan. 1, said the letter, dated Nov. 16 and addressed to Victor Castro, director of the district Bureau of Regulatory Support.
Blanchard Terminal Co. operates out of Findlay, Ohio, where Marathon is based.
An agreement between BP and Marathon to transfer the district consumptive use permit was dated Nov. 19.
"BP and Marathon Petroleum Co. LP have entered into an agreement to sell the Jacksonville terminal to MPC, and MPC has directed BP to assign the Jacksonville Terminal to Blanchard," said the agreement.
Duval County records indicate BP bought the property in 1985. The combined taxable value for both terminal properties is about $10.5 million.
A spokesman did not say how many employees work at the terminal.
"The terminal is being sold as a going concern, so we would expect the Jacksonville employees to stay with Marathon, but that is ultimately Marathon's decision," said spokesman Scott Dean in an email.
BP has been working through the aftermath of the April 20, 2010, explosion aboard the Deepwater Horizon oil-drilling rig in the Gulf of Mexico connected to BP. As a result, 11 people died and others were injured and the explosion led to what has been reported as the largest accidental oil spill in history.
BP faces billions of dollars in cleanup costs, claims and fines, according to media reports.
The Associated Press reported Tuesday that two BP rig supervisors charged with manslaughter in the death of 11 workers on the Deepwater Horizon will stand trial in 2014. The AP reported they are accused of disregarding high pressure readings that should have been indications of trouble before BP's well blowout.
BP is based in London and its U.S. service center is based in Naperville, Ill., near Chicago.
BP has been divesting properties, according to news reports. In reporting third-quarter financial results Oct. 30, BP referred to the divestments.
"BP will continue to reshape and focus its business portfolio around its key operating strengths," it said.
"Since the end of the second quarter, BP has announced agreements for divestments with a total value of over $11 billion, including for the Texas City and Carson refineries and associated assets and a number of non-strategic deepwater fields in the Gulf of Mexico," it said.
"This highly successful divestment programme is about fundamentally reshaping and repositioning our upstream portfolio. It gives BP a differentiated competitive position which plays to our strengths in exploration, deepwater fields, giant fields and gas value chains. It is also biased to oil, which we believe has higher returns potential," said BP group Chief Executive Bob Dudley in a news release.
Dudley said the company expected to make a final payment of $860 million into the $20 billion Gulf of Mexico Trust Fund during the fourth quarter of the year.
At the end of the third quarter, the cash balances in the Trust Fund and the Qualified Settlement Funds amounted to $10.9 billion, with $19.1 billion contributed and $8.2 billion paid out, BP reported.
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