Trafigura to invest over USD1 billion and supply crude for CVR Energy refinery buy
- Trafigura will subscribe for USD800 million of new CVR shares to acquire a minority stake at closing of CVR’s refinery acquisition.
- Trafigura’s combined equity investment and intermediation support will exceed USD1 billion.
- After closing, Trafigura Trading LLC will be the exclusive crude supplier and intermediation counterparty for the acquired refineries and will enter petroleum product offtake arrangements.
- The acquisition covers the Mandan refinery (North Dakota) and the St. Paul Park refinery (Minnesota) from subsidiaries and affiliates of Marathon Petroleum Corporation.
Transaction overview
Trafigura has signed strategic agreements with CVR Energy to support CVR’s intended acquisition of the Mandan refinery (North Dakota) and the St. Paul Park refinery (Minnesota) from subsidiaries and affiliates of Marathon Petroleum Corporation. Trafigura will subscribe for USD800 million of new CVR shares to acquire a minority stake at closing.
Commercial arrangements
Following the successful closing, Trafigura Trading LLC will become the exclusive supplier of crude oil and the intermediation counterparty to the acquired refineries and will enter into petroleum product offtake arrangements. Combined equity investment and intermediation support from Trafigura will exceed USD1 billion.
Strategic and regional impact
The two refineries supply fuel to the mid-continent region; the agreements are presented as enabling a secure crude supply and a reliable route to market for U.S.-produced fuels, leveraging Trafigura’s logistics and trading network.
Background
The Trafigura Group notes more than three decades of experience working with refineries globally through direct investment, capacity utilisation, and supply and offtake agreements.
Source: Trafigura