BP Plc (NYSE:BP) (LON:BP) agreed to sell its Texas City Refinery to Marathon Petroleum Corporation (NYSE:MPC) for $2.5 billion.

The Texas Refinery is one of the largest and most complex refineries in the United States, producing 451,000 barrel per calendar day (475,000 barrel per stream day).

The agreement also includes BP’s logistics in the Southeast part of the United States, including three intrastate NGL pipelines originating at the Texas City refinery, an allocation of BP’s Colonial Pipeline Company shipper history, four marketing terminals, jobber contract assignments for approximately 1,200 branded retail sites in Tennessee, Mississippi, Alabama, and Florida; and a 1,040 megawatt cogeneration facility.

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Under the terms of the agreement, Marathon Petroleum Corp (NYSE:MPC) would pay $598 million for the refinery and pipelines, $1.2 billion for hydrocarbon inventories, and a  $700 million earn-out arrangement based on future margins and refinery throughput over the next six years. Marathon Petroleum expects to pay the deal with its available cash on hand.

BP Plc (NYSE:BP) (LON:BP) decided to sell $35 billion worth of assets to help cover the costs of the Deep Water Horizon Explosion in 2010. According to BP, the sale of the Texas Refinery would increase the total amount of assets sold by the company, to $38 billion.

Aside from the Texas Refinery, BP Plc (NYSE:BP) (LON:BP) also sold its Carson Refinery in Southern California, as part of its decision in 2011, to cut its refining capacity in the United States by 50 percent.  Last month, the company also sold some of its assets in the Gulf of Mexico, worth $5.6 billion.

In statement, Iain Conn, chief executive of BP’s global refining and marketing business, said the sale of the Texas City Refinery is a second major milestone of the company’s strategy in refocusing its fuels business in the United States. According to Conn, selling the Texas City refinery allows BP to focus its fuels investments in the company’s three northern refineries, with crude feedstock advantage and associated marketing business.

In addition, Conn said, “Marathon Petroleum is a highly respected refiner and marketer. Their ability to take on the responsibilities of this large and complex refinery will be good for the long-term future of the business and its employees. Although largely a merchant refinery, we have decided to sell certain terminals and marketing assets in the Southeast U.S.”

Furthermore, he said that BP remains committed in providing fuels, lubricants, and petrochemicals to its customers in the country, while delivering long-term growth and profits to our shareholders.

BP has approximately 8,000 BP Plc (NYSE:BP) (LON:BP) and ARCO-branded sites and will remain a significant fuels retailer in the country, particularly in the in the Midwest, Pacific Northwest, and in the East Coast.

On the other hand, Marathon Petroleum Corp (NYSE:MPC) CEO, Gary R. Heminger, said the company’s acquisition of Texas City at an attractive amount provides an opportunity to add significant value to its shareholders. According to him, “We have a long-standing commitment to safe and environmentally-conscious operations. BP has made significant investments to improve the safety, reliability, and environmental performance of the refinery in recent years. We will leverage those investments in the refinery with our continuing focus on safe and reliable operations. “

BP Plc (NYSE:BP) (LON:BP) and Marathon Petroleum Corp (NYSE:MPC) expect to close the transaction during the early part of 2013.