BP has said it will defend itself against a federal civil suit by Marathon Petroleum which alleges it failed to deliver a Texas oil refinery.
The legal action also says three product terminals were not in the condition promised under the $2.4billion sales agreement signed four years ago.
A spokesman for BP claimed the suit was “nothing more” than an attempt by Marathon to renegotiate terms of the Texas City refinery purchase.
He said:”It is disappointing that immediately following the first mediation session, Marathon chose to go to court.”
Marathon has also alleged BP planned to carry out an overhaul of an aromatics recovery unit prior to the sale being complete, but did not do so after signing the sale agreement, according to the lawsuit.
However, BP said it spent billions of dollars in the years before the sale to upgrade the Texas City refinery.
The spokesman added:”Marathon insisted on and received a discounted sales price so it could make some additional capital investments.
“Marathon conducted extensive due diligence and was given virtually unrestricted access to documents and equipment at the refinery.”
The BP Texas City refinery was the site of a March 23, 2005, explosion that killed 15 workers and injured 180 others.
BP was fined $84.6 million by the US Occupational Safety and Health Administration between 2005 and 2012 for safety rules violations found at the refinery in investigations following the blast.