Husky Completes Prince George Refinery Sale

Husky Energy has revealed that it has closed the sale of its Prince George Refinery to Tidewater Midstream and Infrastructure for US$215 million in cash, plus a closing adjustment of approximately US$53.5 million.

The transaction includes a contingent payment to Husky of up to US$60 million over two years, Husky noted. The company also highlighted that it has entered into a five-year offtake agreement with Tidewater for refined products from the refinery.

Proceeds of the sale will be used “in accordance with Husky’s funding priorities, which include maintaining the strength of the balance sheet and returning value to shareholders through a sustainable cash dividend,” Husky stated.

Last month, Husky announced that it had reached an agreement for the sale of its Prince George Refinery. In that announcement, the company stated that Tidewater is retaining all refinery staff.

Located in Prince George, B C, the 12,000 barrel-per day Prince George Refinery processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products.

Source: Rigzone