SAN ANTONIO-- With a new chief executive firmly in place as it prepares to restart its damaged Anacortes, Wash., refinery, more changes are in the works for San Antonio refiner-marketer Tesoro Corp. It announced late Fridayas reported in a Morgan Keegan/CSP Daily News Flashthat it has agreed to acquire the existing Shell-branded wholesale supply contracts in North Dakota, South Dakota, Minnesota, Utah and most of Idaho. The acquired contracts represent approximately 300 Shell-branded stations.
"Shell has one of the most recognized retail gasoline brands in the [image-nocss] world and we are pleased to expand our usage of the brand," said Everett Lewis, executive vice president and chief operating officer.
The transaction will become effective January 1, 2011. After the deal closes, the number of Shell-branded stations within the Tesoro retail system is expected to be approximately 650.
Under the terms of the agreement, Tesoro may also grow the Shell brand through retail stations in these areas that are anchored by the company's refineries in Mandan, N.D., and Salt Lake City.
Click the Download Now button below to view a map of Tesoro's current retail marketing area.
In its 2010 second quarter, Tesoro has seen improved performance in both the wholesale and retail marketing channels, as spot prices for gasoline and diesel fell more rapidly than wholesale rack or retail street prices during the period. (Click here for previous CSP Daily News coverage.)
The company told Dow Jones that it expects its 120,000-barrel-a-day refinery, located north of Seattle on Puget Sound, to restart in early October, after it was shut nearly five months ago following a deadly explosion.
In May, Tesoro announced that Greg Goff was elected by the board of directors to be the company's new president and CEO, replacing the retiring Bruce Smith. Goff, 53, formerly served as senior vice president of commercial for Houston-based ConocoPhillips. (Click here for previous coverage.)
Houston-based Shell Oil Products US, a subsidiary of Shell Oil Co., is a leader in the refining, transportation and marketing of fuels, and has a network of approximately 6,100 branded gas stations in the western United States. Shell Oil is an affiliate of the Shell Group. Shell Oil Co. is a 50% owner of Motiva Enterprises LLC, along with Saudi Refining Inc. Motiva refines and markets branded products through more than 8,300 Shell-branded stations in the eastern and southern United States. Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague.
Tesoro is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in the western United States with a combined capacity of approximately 665,000 barrels per day. Tesoro's retail-marketing system includes more than 875 branded retail stations, of which more than 380 are company operated under the Tesoro, Shell, Mirastar and USA Gasoline brands. Its network of retail locations is spread throughout the West Coast, the Rocky Mountains, the Northern Great Plains, Alaska and Hawaii. Mirastar retail locations in nine western states are located exclusively at Wal-Mart stores.
The company markets gasoline and diesel fuel to independent marketers, commercial end-users, unbranded jobbers and high-volume retailers throughout the western United States. It also offers a range of partnership opportunities to customers on a branded or unbranded basis. It currently market more than 300,000 barrels per day to wholesale customers, available at more than 50 company-owned-or-operated and third-party terminals. Tesoro's bulk terminals serve a variety of commercial, shipping and industrial customers throughout the western United States. It owns or operates 14 bulk product terminals in Alaska, Hawaii, California, Washington, Idaho and Utah. It also distributes products through third-party terminals in the western and Midwestern United States. These products are supplied by its refineries and through purchases and exchange arrangements with other refining and marketing companies.
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