Calgary-based Cenovus will pay £247.6 million for the UK supermajor’s share in the facility as part of a multi-year supply agreement.
In addition to this fee, the Canadian firm will also have to shell out for the value of the inventory and take over operations when the transaction closes, expected later this year.
More than 580 BP refinery employees will transfer over to the New York-traded Cenovus before the end of 2022.
The Husky Toledo refinery can process up to 160,000 barrels of crude oil per day, producing gasoline, diesel, jet fuel, propane, asphalt, and other products.
Earlier this year the London-listed BP entered into a separate agreement with the Calgary firm to sell its interest in the Sunrise oil sands project in Alberta, while acquiring Cenovus’ interest in the Bay du Nord project offshore Newfoundland and Labrador.
Once that deal has closed – also expected by the end of 2022 – BP will no longer have any stakes in oil sands production, shifting its focus north of the border to offshore growth in Canada
Chairman and president of BP America Dave Lawler said: “We are proud of the business we have built in Toledo, which has provided thousands of good-paying jobs and made significant contributions to Ohio’s economy and America’s energy security for decades.
“As our partner in Ohio, Cenovus is ideally placed to take this important business into the future.”
BP-Husky Toledo Refinery vice president Des Gillen said: “I am incredibly proud of the people who safely operate this refinery every day.
“Their unwavering dedication and expertise have helped provide a strong foundation for the future of this facility, which will continue to provide jobs in this community and energy for this region for years to come.”
At the time of writing (13:45) BP shares are up 1.13%, going for £4.15.
Cenovus stock is being traded in New York for £13.56 ($16.43).