BP-Cenovus Energy Owned Ohio Refinery May Remain Closed Longer After Fire Incident: Report

BP-Cenovus Energy Owned Ohio Refinery May Remain Closed Longer After Fire Incident: Report
  • BP Plc BP laid off most contractors at the Toledo, Ohio, refinery it owns with Cenovus Energy Inc CVE, according to a report citing sources familiar with the matter.
  • The more than 100-year-old refinery has been offline following the explosion and could be shut for several months.
  • The move indicates that approximately 160,000 barrel-per-day plant will experience a prolonged shutdown following last week's explosion and fire.
  • In August, Cenovus said it would buy the remaining 50% stake in the BP-Husky Toledo Refinery. The deal is expected to close by the end of 2022.
  • In 2008, Husky Energy Inc formed a joint venture with BP by acquiring a 50% stake in the Toledo refinery. The stake then moved to Cenovus when it combined with Husky in 2021.
  • At least one contracting company is on-site assessing the damage, Reuters reported.
  • The U.S. Chemical Safety Board is also investigating the incident, which it said caused the release of sulfur dioxide and hydrogen sulfide and significant property damage. The incident involved two fatalities.
  • The outage caused Chicago gasoline cash differentials to reach new highs.
  • The official cause of the explosion has not been reported.
  • Price Action: BP stock is down 0.28% at $28.48 during the premarket session on the last check Thursday.
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