A refinery where 15 people were killed in an explosion in 2005 is to be sold by BP after the oil giant agreed a £1.5billion deal.
The agreement with Marathon Petroleum Corporation – which covers the Texas City refinery – will bring BP closer to its target of £23.7billion of disposals by the end of next year.
BP has now agreed disposals worth more than £21.8billion, including the Texas deal, as part of its plan to raise cash to pay the costs of the 2010 Deepwater Horizon disaster.
In addition to the deaths, more than 170 others were injured on March 23, 2005 in the fire and explosion at the Texas City refinery, which BP acquired in 1998 as part of its merger with Amoco.
It is the third largest refinery in the US, with a production capacity of more than 475,000 barrels of oil per day.
BP has now paid out more than £62million in penalties for a series of violations exposed during inspections in the wake of the catastrophe.
In addition to the explosion in March 2005, the refinery was the site of a gas leak in August 2005, a fire in July 2005 caused by an incorrectly installed pipe, and another fire in March 2004, caused by a corroded pipe.
Texas City refinery manager Keith Casey said: “During the past several years the Texas City refinery has been transformed through a resolute focus on safe, compliant and reliable operations and in recent months has returned to profitability.
“It does not, however, fit with the long-term strategic direction of BP’s global refining portfolio.”
BP will also sign over contracts for some 1,200 retail sites in Tennessee, Mississippi, Alabama and Florida which could be supplied by the refinery.
But the group said it will remain a significant retailer of fuels in the US, with around 8,000 BP and Arco-branded sites.
Last month, BP was dealt a blow after it emerged that the US Department of Justice intended to prove gross negligence or wilful misconduct over the Deepwater Horizon disaster in the Gulf of Mexico.
BP said it would defend itself against the action, but the move killed hopes of an out-of-court settlement and has the potential to escalate the financial cost of the disaster.
Shares in the energy giant rose 0.25p to 437p.
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