Western Refining purchased and will undergo name change

Western Refining, which has a crude-oil refinery near Gallup, has been purchased and will have a new identity beginning Tuesday, Aug. 1, according to the company’s website, but it’s unclear what impact this could have locally.

Tesoro Corporation, based in San Antonio, Texas, announced June 1 that it finalized the acquisition of Western and that the new combined company will become known as Andeavor, which they describe as a premier refining, marketing and logistics company.

“Our continuing evolution, driven by the extraordinary efforts of our employees and the addition of outstanding talent and assets, has transformed our Company,” Western stated on its website. “Our new name acknowledges the significant progress we have made and signals our aspiration to continue establishing Andeavor as a premier refining, marketing and logistics company. We aim to be better in every way – for our people, our customers, our shareholders, our business partners and our communities.”

There was no information available about the impact the sale could have on Western’s Gallup Refinery — located in Jamestown, about 19 miles east of Gallup — and its employees.

However, it was announced that Western’s former executive chairman, Paul Foster, and its CEO, Jeff Stevens, would join Tesoro’s board of directors. Andeavor’s headquarters will remain in San Antonio.

Western and Tesoro first announced they were in acquisition talks in November 2016.

A news release states the strategic combination of the companies forms a “powerful, integrated value chain with significant marketing and logistics growth opportunities” in the United States.

Tesoro Chairman and CEO Greg Goff stated he was excited about the transformation of Tesoro and that the acquisition of Western is a significant milestone in the company’s journey.

“We are well prepared and will immediately move forward with the integration of our companies and capturing synergies,” Goff said. “We have evaluated ideas and opportunities to capture synergies over the last few months and are very confident in our ability to achieve our target of $350 to $425 million in annual synergies.”

Andeavor will have 1.1 million barrels of refining capacity, 10 refineries, 13,000 employees and more than 3,000 retail locations throughout the Western United States.

“It’s important for you to know that some things won’t change,” Goff stated, “such as our steadfast commitments to safety, environmental responsibility, and to being a good employer and responsible member of the communities where we operate.”

ABOUT GALLUP REFINERY

According to Western’s website, the refinery sits on 880 acres and is the only active refinery in the Four Corners area. The refinery’s crude oil throughput is about 25,000 barrels per day.

“The Four Corners area serves as one source of raw material supply for the Gallup refinery,” the website states. “A locally produced, high-quality crude known as Four Corners Sweet is the primary feedstock for this refinery, although the supply is supplemented with other feedstocks from outside the area. Crude oil is either collected by a pipeline network or delivered by truck transports to pipeline injection points and/or storage tankage.

The website further states: “The Gallup refinery’s product slate includes gasoline, diesel, propane, butane, and heavy fuel oils. The Four Corners region is the primary area for refined products from the Gallup refinery. Other areas receiving refined product from this refinery include metropolitan Albuquerque (the largest market in New Mexico) and the Northern Arizona region.”

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