Murphy Oil Buys Ethanol Plant
EL DORADO, Ark. -- Murphy Oil Corp. acquired a corn-based ethanol plant for $92 million, marking its first foray into biofuel manufacturing, the Associated Press reported.
"Given the current ethanol mandates and our subsequent blending needs, having more of a presence in the supply chain better balances our business," Murphy Oil President and CEO David Wood said in a statement.
The independent petroleum producer, refiner and marketer said it will also invest around $15 million in working capital into the ethanol plant in Hankinson, N.D., which has annual production capacity of 110 million gallons, but has been idle since October 2008.
According to a Reuters report, the deal will be financed primarily through non-recourse debt offered through the sellers.
Federal mandates require 12.95 billion gallons of biofuel to be blended into the nation's fuel supply in 2010, and 36 billion gallons by 2022.
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"Given the current ethanol mandates and our subsequent blending needs, having more of a presence in the supply chain better balances our business," Murphy Oil President and CEO David Wood said in a statement.
The independent petroleum producer, refiner and marketer said it will also invest around $15 million in working capital into the ethanol plant in Hankinson, N.D., which has annual production capacity of 110 million gallons, but has been idle since October 2008.
According to a Reuters report, the deal will be financed primarily through non-recourse debt offered through the sellers.
Federal mandates require 12.95 billion gallons of biofuel to be blended into the nation's fuel supply in 2010, and 36 billion gallons by 2022.
Related News:
C-store Chains Report Mixed Q2 Earnings