Chevron Corp., owner of the state’s second-largest refinery, has hired Deutsche Bank to identify potential buyers for the Kapolei facility.
Chevron’s decision to potentially sell its 54,000-barrel-per-day Hawaii refinery comes one year after Houston-based Par Petroleum Corp. purchased Tesoro’s 94,000-barrel-per-day Hawaii refinery and 31 Tesoro-branded retail stations. Chevron and Par Petroleum operate the only two refineries in the state.
Chevron’s spokesman in Hawaii, Albert Chee, said Thursday the company wants to gauge interest in its property.
"We have not made any decision to exit Hawaii, sell the refinery or any part of our business," Chee told the Honolulu Star-Advertiser. "But what we have done is hire an investment bank to actually go and determine if there are any interested parties in our business."
Chee said Chevron’s managers in Hawaii had meetings with many of the company’s 300 local employees Thursday to alert them to the hiring of an investment bank to seek potential buyers.
There are 32 Chevron gas stations on Oahu, according to the Chevron website. Par Petroleum, owner of the Tesoro gas stations, announced in June that it was buying the more than 80 76-branded gas stations owned by Mid Pac Petroleum LLC.
In addition to supplying gasoline for island vehicles, Hawaii’s two refineries sell jet fuel to airlines and oil for generating electricity.
Two weeks ago Hawaiian Electric Co., the state’s dominant utility, said it has selected Chevron as the primary fuel provider for the utility. HECO’s parent, Hawaiian Electric Industries Inc., said it would not renew its low-sulfur fuel oil supply contract with Par Petroleum that expires at the end of this year.
HECO said its customers would save about $2.40 on their monthly electricity bills as a result of the change.
HECO spokeswoman Lynne Unemori said late Thursday the company had no comment on the potential sale of Chevron’s refinery.
