Oil and Gas

BP Sells Refinery, Arco Retail to Tesoro for $2.5 Billion

Oil company BP says it has agreed to sell its refinery in Carson, Calif., and other West Coast assets to Tesoro Corp.

BP sign
Ben Stansall | AFP | Getty Images

BP said Monday that Tesoro is paying $2.5 billion cash for the refinery, pipelines, storage terminals, and Arco-branded retail outlets in southern California, Arizona, and Nevada. BP is also selling the Arco brand rights for northern California, Oregon, and Washington, and will lease them back from Tesoro .

Earlier Monday, BP announced it was selling two gas processing plants in Texas to Eagle Rock Energy Partners for $227.5 million in cash for the Sunray and Hemphill gas processing plants in Texas.

BP says it has now sold or agreed to sell assets worth $26.5 billion since 2010. The company has a target of $38 billion in disposals by the end of next year to help pay the costs of the Macondo well blowout in the Gulf of Mexico.