Murphy Oil Company Purchases Ethanol Plant

Michelle Kautz

murphy_oilMurphy Oil Corporation, an international oil and gas company that conducts business through various operating subsidiaries, has purchased an idled ethanol plant in Hankinson, North Dakota.

The 110 million gallon per year corn-based ethanol plant was bought for $92 million. Additionally, an estimated $15 million in working capital will be invested into the facility.

Murphy Oil Corporation’s President and Chief Executive Officer, David M. Wood, said, “We are adding this capability to supplement our growing North American fuels business. “It also marks our initial entry into the manufacture of bio-fuels. Given the current ethanol mandates and our subsequent blending needs, having more of a presence in the supply chain better balances our business.”

He also added, “This plant is favorably located near the feedstock supply and has accessible rail service for carrying the finished product. We should see first production shortly.”

Murphy USA Marketing Co. (Murphy Oil USA, Inc.), a subsidiary of Murphy Oil, operates retail gasoline stations under the Murphy USA® brand across 20 states in the U.S. These retail fueling facilities are primarily in the parking areas of Wal-Mart Supercenters.

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