Phillips 66 (NYSE:PSX) announced an agreement on January 5 to acquire the assets and infrastructure of the Lindsey Oil Refinery located in northern England. The financial details of the transaction were not made public.
The company stated it does not intend to restart standalone operations at the refinery. Instead, the acquired assets will be integrated into Phillips 66's existing Humber Refinery complex in North Lincolnshire.
Paul Fursey, the UK lead executive for Phillips 66, commented on the acquisition. "Agreeing to acquire Lindsey Oil Refinery assets and associated infrastructure marks an important step for Phillips 66 Limited as we continue to invest in the UK’s energy security," Fursey said.
Phillips 66 is a leading integrated downstream energy provider involved in refining, transporting, and marketing fuels. The company's refineries are designed to process heavy sour grade crude, such as the type produced in Venezuela.
According to company CFO Kevin Mitchell, Phillips 66 has the capacity to process several hundred thousand barrels per day of Venezuelan crude at its Sweeny and Lake Charles refineries. The company was recently included in a list highlighting high-yield crude oil stocks following recent geopolitical developments.
Phillips 66 currently offers an annual dividend yield of 3.46%. The stock was also featured in a recent list of energy stocks recommended for retirement portfolios.