Tesoro Corporation said Tuesday that it plans to sell its Hawaii operations, including all of its retail gas stations and the largest petroleum refinery in the state, later this year.
San Antonio, Texas-based Tesoro (NYSE: TSO), whose Kapolei refinery produces 94,000 barrels of oil per day, also will sell its 32 retail gas stations and “all associated logistical assets,” the company said.
“Following a comprehensive analysis, we’ve determined that our business in Hawaii does not align with our strategic focus on the Mid-Continent and West Coast, and can provide greater value for a company that will invest in the business and employees,” President and CEO Greg Goff said in a statement. “While the Hawaii business is no longer in line with our vision for Tesoro’s future, there is no question that it offers value for the right investor.”
Tesoro Hawaii has more than 550 employees, including about 260 at the Kapolei refinery.
“During the sales process, things will operate as normal,” said Lance Tanaka, manager of government and public affairs for Tesoro Hawaii. “We will continue to honor all our contractual agreements, we will continue to pay our bills, we will continue to invest in the community.”
Tesoro Hawaii expects to complete a sale, which would be subject to regulatory and other approvals, no sooner than the second half of this year.
Tesoro operates the larger of Hawaii’s two refineries; the other is owned by Chevron Corp. In 2010, the company said it was reviewing its Hawaii operations because the refinery was losing money.