Par Pacific to Buy Select Refining Assets from Island Energy Services Following IES' Announcement of Cessation of their Refining Operations
Aug. 29, 2018
Par Pacific Holdings, Inc. (“Par Pacific”) has entered into an agreement with Island Energy Services (“IES”) to acquire certain refining units for $45 million following IES’ announcement to cease its refining operations. The units, which are located near Par’s current Kapolei refinery, will be used by Par Pacific to supplement its existing operations in supplying IES so that IES may fulfill its contractual obligations with Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, and Kauai Island Utility Cooperative. Par Pacific also has agreed to enter into a long-term agreement with IES to utilize IES’ retained logistics assets for the storage and throughput of crude oil and related products necessary for the operation of these newly acquired assets.
In connection with the agreement, Par Pacific will hire approximately 65 former IES employees to help run the acquired assets and assure these high-quality jobs remain intact. In addition, we anticipate hiring another 20 employees at our Kapolei refinery, positions that former IES employees will be encouraged to apply for.
With IES’s shift to operations of a large-scale open access import terminal, we anticipate continued strong competition from the existing market participants, as well as from potential new entrants.
The transaction is expected to close before the end of the fourth quarter and is subject to certain closing conditions.