CALGARY, Alberta, Sept 5 Korea National Oil Corp
said on Friday that it would sell its
115,000-barrel-per-day refinery in Come by Chance, Newfoundland,
to SilverRange Financial Partners LLC for an undisclosed price
following a months-long search to find a buyer.
KNOC's Harvest Operations Corp unit is selling the aging
refinery, as well as 53 gas stations and convenience stores, to
SilverRange. The New York-based merchant bank has entered into a
multiyear refining deal with an unspecified global oil company,
Harvest Operations and SilverRange said in a release.
"(The refinery) is strategically located along Atlantic
crude oil shipping routes and provides access to petroleum
markets in Europe and the U.S. Eastern seaboard," SilverRange
official Harsh Rameshwar said in the release. "Its clean fuel
technology enables the refinery to produce low-sulfur, clean
fuels, providing flexibility to refine crudes from many parts of
KNOC said last year it would sell the money-losing refinery
as it moved to boost profits from its international oil and gas
Built in the early 1970s, the facility has had a troubled
history. Since its initial owners went bankrupt, the refinery
changed hands many times before its sale to Harvest Energy in
2006. In December 2009, KNOC bought Harvest's operations.
The government of Newfoundland and Labrador has agreed to
free SilverRange from liability for pre-existing environmental
contamination at the site while the new owner has committed to
cut the refinery's sulfur-dioxide emissions.
(Reporting by Scott Haggett; Editing by Lisa Von Ahn)