Chevron Hawaii Sells Stations, Refinery and Pipeline to New York Investor
- Apr 25, 2016
New York–Island Energy Services LLC, a subsidiary of New York-based private-equity firm One Rock Capital Partners, has agreed to buy Chevron U.S.A.’s operations in Hawaii. These include a 58,000 barrel-per-day refinery in Kapolei on West Oahu, 58 gasoline stations spread throughout the archipelago, four storage terminals on Oahu, Maui, Kauai and Hawaii Island, as well as pipeline distribution systems and downstream assets.
Terms of the transaction, which is expected to close in the second half of 2016, were not disclosed. According to One Rock, all 300 Hawaii-based employees will be offered continued employment.
The refinery primarily supplies jet fuel to the U.S. military and airlines serving the Hawaiian islands and ranks as the smaller of the two oil refineries in Hawaii.
“Chevron has an excellent industry reputation for the quality and reliability of its products and services,” One Rock Managing Partner Tony Lee said in prepared remarks. “We look forward to building upon the strong foundation that Chevron has established in Hawaii over the past several decades.”
The sale was a long time coming as Chevron Corp. announced that it intended to sell its assets in Hawaii several years ago, considering them “not core” to its business.
“The entire One Rock team is excited to be able to provide operating expertise to such a vital component of the Hawaii energy landscape, as these assets deliver important refined petroleum products to the Islands’ utilities, airlines and motorists,” added Scott Spielvogel, managing partner at One Rock.
John Georges, Andrew Georges and Mike Mayer, who are also operating partners at One Rock, have been deeply involved in the planning of the transaction. They have extensive expertise in the chemicals, process and energy industries.
One Rock also has a strategic relationship with Mitsubishi Corp., which might provide crude oil at more competitive prices. The average gasoline price in Hawaii is approximately $2.11 per gallon, which is about 23 percent higher than the national average.
Image courtesy of Chevron Hawaii Refinery via Facebook