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.
Learn all about CFD trading strategies and the Dow Jones at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.