SAN ANTONIO -- Tesoro Corp. has signed a definitive agreement with Kauai Petroleum Co. Ltd, a privately-held company based in Kauai, Hawaii, to purchase its four company-owned retail locations, a product terminal at Nawiliwili, and trucking assets that support product delivery to retail locations on the Island of Kauai.
"This acquisition reflects our continued interest in expanding our operations where we have market synergies," said Bruce A. Smith, chairman, president and CEO of Tesoro Corp., San Antonio. "Since the Island of Kauai is the fourth-largest [image-nocss] fuel market in Hawaii and has the fastest-growing jet fuel demand, we believe this acquisition will provide another strategic outlet for our gasoline and jet fuel production from our Kapolei refinery on Oahu."
Tesoro is in the process of completing a due diligence review of the Kauai Petroleum Co. (KPC) assets and anticipates completion within 30 days. KPC will be required to call for a vote of its shareholders to approve the sale in accordance with Hawaii law before closing of the purchase and sale, which is expected to take place by the end of June.
Tesoro expects to discuss employment opportunities with KPC employees and extend employment offers, contingent upon successful completion of background screening and pre-employment checks, as soon as possible.
Tesoro currently operates a 94,000-barrel-per-day refinery in Kapolei, about 22 miles west of Honolulu. The refinery supplies jet and marine fuels to the trans-Pacific transportation industry for some of the busiest international air and sea routes in the world. It also serves Hawaii consumers with gasoline and diesel fuels. Tesoro distributes products from its refinery to customers through third-party terminals at Honolulu International Airport and Honolulu Harbor and by barge to Tesoro-owned and third-party terminal facilities on the islands of Oahu, Maui, Kauai and Hawaii.
Tesoro is an independent refiner and marketer of petroleum products. Tesoro operates six refineries in the western United States with a combined crude oil capacity of more than 560,000 barrels per day. Tesoro's retail marketing system includes more than 475 branded retail stations, of which more than 200 are company operated under the Tesoro and Mirastar brands.
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