Louisiana Land and Exploration Company Explores Strategic Alternatives for Crude Oil Refining Assets

Strategic Insights -

The Louisiana Land and Exploration Company (LL&E) has engaged Morgan Stanley & Co. Incorporated to explore strategic alternatives for its crude oil refining assets, including a refinery in Saraland, Alabama, that has an inlet capacity of 74 thousand barrels per day. The refinery, situated on an 800-acre tract, produces a full range of products, including propane, unleaded gasoline, jet fuel, and diesel fuel. The Company's deep water terminal in the Port of Mobile can accept vessels up to 40 feet of draft.

Key Takeaways:

  • LL&E has engaged Morgan Stanley & Co. Incorporated to explore strategic alternatives for its crude oil refining assets.
  • The assets under review include the refinery and terminal near Mobile, Alabama, which have a combined capacity of over 2.9 million barrels.
  • The refinery has an inlet capacity of 74 thousand barrels per day and produces a full range of products, including propane, unleaded gasoline, and jet fuel.
  • The Company's deep water terminal is located in the Port of Mobile and can accept vessels up to 40 feet of draft.
  • The terminal is connected to the refinery by parallel crude and product lines, approximately seven miles each in length.
  • LL&E has indicated that this initiative is consistent with its ongoing strategic review of its asset base.
  • The refinery's equipment includes atmospheric and vacuum distillation, distillate hydrodesulfurization, sulfur recovery, catalytic reforming, and light naphtha isomerization.
  • The refinery can handle both high- and low-sulfur feedstocks.

Statistics:

  • Refinery inlet capacity: 74 thousand barrels per day
  • Refinery production capacity: over 2.9 million barrels
  • Terminal draft: up to 40 feet
  • Terminal location: Port of Mobile, Alabama
  • Refining equipment: atmospheric and vacuum distillation, distillate hydrodesulfurization, sulfur recovery, catalytic reforming, and light naphtha isomerization

Sources:

  • Business Wire (June 15, 1995)
  • The Louisiana Land and Exploration Company press release (June 15, 1995)