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San Diego: Leading US refining company Valero Energy said on Tuesday it is considering selling nearly a third of its North American refineries amid a US economic slowdown that is crimping fuel demand, and that it is exploring new projects in the Middle East and Asia.
The outlook marks a major shift in Valero's strategy after a decade of sterling profits, acquisitions and expansions transformed the San Antonio-based company from small independent refiner into a behemoth.
Valero Chief executive Bill Klesse, speaking at the National Petrochemical and Refiners Association meeting, said the company is close to selling refineries in Aruba, Memphis, Tennessee, and Krotz Springs, Louisiana, and has received interest from potential buyers for two other plants.
Suitors
Klesse did not say what companies were vying for the plants, which account for 840,000 barrels per day of the company's 3.1 million bpd capacity.
But Zurich-listed Petroplus announced in late February it partnered with two private equity firms to buy US refineries, raising some speculation in the oil industry that it could be one of the bidders. Klesse said that at the same time, Valero is exploring potential growth in the Middle East and Asia, where demand for fuel has been robust.
"We have looked in the last six months at opportunities in the Middle East and we looked at a situation in Asia," said Klesse. "Nothing is imminent."
Subsidised prices and a weakening dollar have helped keep fuel demand high in many consuming nations, he said.
After a stretch of soaring profits that Valero once dubbed "the golden age" of refining, the sector in the US has faced a sharp downturn.
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