Deal Will Keep Sunoco’s Philadelphia Refinery Operating

Sunoco Inc.‘s Philadelphia refinery, which was threatened with closure at the end of this month, will be reborn as an “energy hub.”

The Carlyle Group, a Washington, D.C., private-equity manager, announced plans Monday to operate the refinery with Sunoco as a joint venture called Philadelphia Energy Solutions. The venture will save 850 jobs at the refinery, the largest fuel-production plant in the northeastern United States, and may employ hundreds more if plans to expand production are realized.

Carlyle officials say they are “reimagining” the business to exploit new, cheaper domestic sources of crude oil to replace expensive imported petroleum, a major reason the refinery was uncompetitive. In September, Sunoco announced plans to exit refining and to sell or shut down the plant this summer, saying it was losing a million dollars a day on fuel production.

Carlyle, which will have a majority interest in the venture and operate the refinery, also plans to increase dramatically the use of low-priced natural gas from Pennsylvania’s booming Marcellus Shale region to reduce refining costs and emissions.

Read more: http://www.philly.com/philly/news/breaking/20120702_Deal_reported_to_keep_Sunoco_s_Philadelphia_refinery_operating.html

Sweeping Changes At Sunoco

Image via Wikipedia

Upset but not surprised.  That’s how union leaders characterized their reactions to the news of Sunoco, Inc.’s sweeping changes to its business structure, including the departure of Chief Executive Officer Lynn Elsenhans.

“It’s not surprising that she is moving on. I was expecting it, anyway. She doesn’t run refineries, she just dismantles them and moves on,” said Dave Miller, president of United Steelworkers Local 10-901 representing the Marcus Hook Sunoco workers.

“I’m curious to see where she is going next. I’d be the first one to call them and give them a heads up: Better get your affairs in order.”

After arriving at Sunoco in 2008 and subsequently dismantling the company’s Marcus Hook refinery operations, Elsenhans announced during Thursday’s fourth-quarter earnings conference call that she is stepping down as the company’s chief executive officer and board chairman at the end of the month.

Read more: http://www.dailylocal.com/articles/2012/02/04/news/doc4f2d4944180db147941261.txt

Philly Based Sunoco To Exit Refining Business – Conducting Strategic Review

PHILADELPHIA, Sep 06, 2011

Sunoco, Inc. (NYSE: SUN) announced today that it plans to exit its refining business and has begun a process to sell its refineries located in Philadelphia and Marcus Hook, Penn. Sunoco also announced that it is conducting a comprehensive strategic review of the company to determine the best way to deliver value to shareholders, including how best to utilize the company’s strong cash position and maximize the potential for Sunoco’s logistics and retail businesses. Credit Suisse Securities (USA) LLC has been retained to assist in the review process.

Sunoco will pursue all options to sell its refineries, but if a suitable transaction cannot be implemented, the company intends to idle the main processing units at the facilities in July 2012…

To read the rest of the press release, click here: http://phx.corporate-ir.net/phoenix.zhtml?c=99437&p=irol-newsArticle&ID=1603618&highlight=