Coastal Holding Preliminary Discussions for Joint Ownership of Refineries
HOUSTON (AP) _ Coastal Corp., which earlier this week announced a joint venture with a Chinese company covering its West Coast refining and marketing properties, is holding talks on a similar deal, a spokesman said Thursday.
The Houston-based energy company negotiating with unidentified foreign oil producers for the sale of half of its Eagle Point, N.J., refinery as well as half of its refining and marketing assets east of the Rocky Mountains, spokesman Jim Bailey said.
He described the talks as ″preliminary discussions.″ Analysts speculated the company is talking with Middle Eastern oil concerns.
Coastal announced in February it wanted to sell half of its refining interests because of the industry’s volatile nature.
The company has refineries in Eagle Point, Mobile, Ala., and three Kansas locations; a major refinery in Corpus Christi, Texas; and an extensive network of wholesale distribution terminals that are primarily east of the Rockies, Bailey said.
Coastal announced Wednesday that it signed an agreement with China National Chemicals Inport-Export Corp., also known as Sinochem, to form a joint venture for ownership and operation of Coastal’s West Coast refining and marketing properties.
Coastal officials said the deal gives Sinochem half interest in the joint- venture company for an undisclosed amount of cash.
Coastal operations to be assigned to the joint venture include a refinery in Hercules, Calif.; fuel oil terminals at Los Angeles and Coos Bay, Ore.; and marketing operations at San Francisco, San Pedro and Long Beach, Calif., and Portland, Ore.
Sinochem is a state-owned, international diversified business corporation of the People’s Republic of China in Beijing.
Coastal is a diversified energy company with total assets of $8 billion and operations in natural gas pipelines, oil and gas exploration and production, refining and marketing, coal and trucking.