ExxonMobil and its affiliates have agreed to sell the Billings refinery and associated marketing and logistics assets in the US to Par Pacific Holdings in a deal worth $310m.

The sale also includes a 65% stake in an adjacent cogeneration facility and an expansive PADD IV and V marketing and logistics network.

Exxon’s logistics assets considered for sale include the wholly owned 55,000 barrels per day (bpd) Silvertip Pipeline, a 40% stake in the 65,000bpd Yellowstone refined products pipeline, and seven refined product terminals.

Par Pacific president and CEO William Pate said: “This acquisition will significantly enhance our scale and geographic diversification and underpins our focus on pursuing strategic growth initiatives.

“We look forward to welcoming the dedicated and highly skilled Billings employees to our team. This acquisition expands our fully integrated downstream network in the western United States.”

Par Pacific anticipates that the acquisition of the 63,000bpd Billings refinery and associated marketing and logistics assets will improve its existing Pacific Northwest market position.

The transaction marks an end for Exxon’s years-long effort to further reduce its refining footprint to focus on production plants along the US Gulf Coast and in the Midwest, reported Reuters.

Exxon has also been offloading oil-producing assets to boost returns.

ExxonMobil Product Solutions president Karen McKee said: “ExxonMobil is focused on investing in facilities where we can manufacture higher-value products such as lubricants and chemicals.

“We have proudly operated the Billings refinery since 1949 and we thank our more than 300 talented employees for their dedicated service.”

Subject to standard conditions and applicable legal requirements, including approval from regulatory authorities, the transaction is planned to close in the second quarter of 2023.

Under a long-term fuels marketing arrangement, Par Pacific will supply approximately 300 ExxonMobil-branded retail locations.