Cenovus Energy has agreed to acquire the remaining 50% stake in BP-Husky Toledo Refinery in Ohio, US, from its joint venture partner bp.

The deal forms part of bp’s efforts to reshape its oil and gas portfolio in North America and reduce greenhouse gas emissions across its operations.

As per the deal terms, Cenovus will pay $300m in cash as consideration along with the value of inventory.

The transaction is expected to close before the end of this year, subject to closing conditions.

Upon completion of the deal, Cenovus’s US operating business will assume the refinery’s operatorship from bp. Cenovus already owns a 50% stake in the refinery following its combination with Husky Energy in 2021.

More than 580 bp refinery employees will also join Cenovus at closing.

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Cenovus president and CEO Alex Pourbaix said: “Fully owning the Toledo Refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities.

“Operating the refinery will open up additional synergies and capital efficiency opportunities, including connectivity with our nearby Lima Refinery. This transaction solidifies our refining footprint in the US Midwest and increases our ability to capture margin throughout the value chain.”

The bp-Husky Toledo Refinery is equipped to process up to 160,000bpd of crude. It produces gasoline, diesel, jet fuel, propane, asphalt, and other products.

Cenovus expects the transaction to provide an additional throughput capacity of 80,000bpd bringing its total refining capacity to 740,000bpd.

Upon completion of the sale, bp’s US refining portfolio will include two facilities that are strategically located to serve customers in the Midwest and Pacific Northwest.