Tesoro has received formal approval from the Federal Trade Commission (FTC) to acquire BP's Carson refinery and related logistics and marketing assets in California. Tesoro then acquires BP's 266,000 bbl/day refinery near Los Angeles as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada. The transaction also includes two complementary assets which are located near the Carson refinery. The first is a 51% ownership in the 400 MW gas-fired Watson cogeneration facility. This company-operated CHP, the largest in California, provides reliable electricity to the Carson refinery and sells excess electricity to the local utility grid. The two companies had reached an agreement in August 2012. The purchase price of BP's assets is US$1,075m, plus the market value of inventory, currently estimated at US$1,300m. This amount includes a US$100m purchase price reduction for the clearance with regulatory authorities.
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