ConocoPhillips sells truck stop stations stake to Pilot Travel for $626 million
01 Jul 2010
ConocoPhillips, the third-largest US oil company said yesterday that it has sold its 50 per cent interest in a joint venture that operates truck stop fuel stations under the Flying J brand to Pilot Travel Centers for $626 million.
The sale is part of the Houston-based oil major's strategic $10-billion divestiture programme to pay its debts.
The sale includes include long-term fuel supply agreements with Pilot.
Flying J operates 550 interstate travel centers and travel plazas in 43 US states and six Canadian provinces and employs more than 20,000 people. It is one of the top 10 privately held companies in the US.
The sale is consistent with ConocoPhillips' overall US marketing strategy, which is to minimise company ownership of motor fuel stations while securing long-term markets for refined products from ConocoPhillips refineries, said the company in a statement.
"We're pleased to conclude this transaction and to have a long-term fuel supply relationship with Pilot, which affords ConocoPhillips the ability to provide an outlet for ConocoPhillips' gasoline and diesel production," said Willie Chiang, senior vice president, Refining, Marketing and Transportation of ConocoPhillips.
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