BP has agreed to sell a number of its US assets to Marathon Petroleum, as the UK oil giant continues to raise money to pay for the 2010 Deepwater Horizon oil spill.
The deal is worth $2.5 billion (£1.6 billion) and includes $600 million in cash, $1.2 billion for the plant's inventories and an additional $700 million depending on future production and margins.
"Today's announcement is the second major milestone in the strategic refocusing of our US fuels business," said head of BP's global refining and marketing business Iain Conn.
Marathon Petroleum's share price on the New York Stock Exchange (NYSE) has rocketed as a result.
Along with BP's Texas refinery, the company is buying a number of natural gas pipelines and four marketing terminals in the south-east of the US, but the deal is still subject to approval before it can go through.
At 16:50 BST, Marathon Petroleum's shares were higher by 6.4 per cent on the NYSE to $58.40.
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