Oil and gas producer to sell refinery for $215 million
Husky said in early January that it was exploring options for some of its non-core and downstream assets, including the Prince George Refinery, to increase focus on its core assets in Atlantic Canada and the Asia Pacific region.
According to a Reuters report, the deal will also include closing adjustments for inventory and a contingent payment of up to C$60 million over two years, Husky said.
The Prince George Refinery has a capacity of 12,000 barrel-per day and supplies refined products to retail outlets in the central and northern regions of British Columbia.
Tidewater said it expects the deal to be over 50% accretive to its distributable cash flow in the first full year of operations. Calgary-based Husky also will enter a five-year offtake deal with Tidewater for refined products from the refinery.