Murphy Oil to concentrate on filling station network, three refineries for sale

In Superior in the far northwestern corner of Wisconsin, officials were confident that Murphy would find a buyer to keep the 35,000-barrel-a-day refinery in business. Murphy has spent tens of millions of dollars in the past decade to upgrade the facility.

In a conference call with securities analysts, Murphy chief executive David Wood said he does not have a buyer, although Murphy has received unsolicited offers. He cannot predict if Murphy will find a single buyer for all the refineries or sell them individually, but he expects to complete the divestment by the first quarter of 2011.

The Superior refinery employs about 150. It's the smallest of the three that are for sale, the only oil refinery in Wisconsin, and one of the smallest in the nation. The other two that Murphy is selling are the 125,000 barrel-a-day refinery in Meraux, La., and a 130,000-barrel facility in Wales. Murphy also will sell its retail network of gas stations in the United Kingdom.

Crews are finishing the latest $50 million upgrade in Superior, including improvements in water and air emissions, Ross said. Five years ago, Murphy spent $75 million on the facility. "This refinery is in pristine condition," Ross said. "They are even upgrading the rail access. This is not a distressed asset."

"By exiting the refining business, we can fully focus our attention and resources on continuing that growth, developing a premier international upstream business and a top quartile U.S. retail franchise," Wood said.