Par Pacific to buy refining assets from Island Energy Services for $45M
Par Pacific Holdings announced that through an indirect subsidiary, it entered into an agreement with Island Energy Services to acquire certain refining units for $45 million plus additional amounts for certain hydrocarbon and non-hydrocarbon inventory following IES' announcement to cease its refining operations. The units, which are located near Par's current Kapolei refinery, will be utilized by Par Pacific to supplement its existing operations in supplying IES so that IES may fulfill its existing contractual obligations with Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, and Kauai Island Utility Cooperative. Par Pacific 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. Par Pacific expects to hire approximately 65 IES employees in connection with the acquisition. New employees will receive benefits comparable to those provided to Par Pacific's existing employees. Par Pacific anticipates hiring another 20 employees at its Kapolei refinery in conjunction with the new investment.