Phillips 66: Melaka Refinery

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[[Image:usrefineries.jpg|thumb|500px|Phillips 66 has 15 refineries globally and 2.2 million barrels a day of capacity. "When we think about our refining business we like to think about it in four segments. One is the Mid-Continent, about 21% of our capacity is there. Margins have been very strong in this area, as you know. Our largest region is the Gulf Coast, about 33% of our capacity is there.We have large economy of scale here. We have very complex refineries on the Gulf Coast. The Western US and Pacific region is about 20%, includes our interests in the Melaka refinery.The West Coast has typically had high margins historically, but the last couple years has been challenged in part due to the economic slowdown in California." Derivative Photo: [http://hughpickens.com Hugh Pickens]]]
 
Phillips 66 has 15 refineries globally and 2.2 million barrels a day of capacity. "When we think about our refining business we like to think about it in four segments. One is the Mid-Continent, about 21% of our capacity is there. Margins have been very strong in this area, as you know. Our largest region is the Gulf Coast, about 33% of our capacity is there.We have large economy of scale here. We have very complex refineries on the Gulf Coast. The Western US and Pacific region is about 20%, includes our interests in the Melaka refinery.The West Coast has typically had high margins historically, but the last couple years has been challenged in part due to the economic slowdown in California."<ref>[http://seekingalpha.com/article/486131-conocophillips-ceo-hosts-phillips-66-analyst-update-conference-call-transcript ConocoPhillips. "Slide Presentation for Phillips 66 Investor Update" April 9, 2012]</ref><ref>[http://www.conocophillips.com/EN/investor/presentations_ccalls/Documents/COP-Transcript-2012-04-09T15_00.pdf ConocoPhillips. "Phillips 66 Analyst Update Transcript of Phillips 66 Analyst Update" April 9, 2012]</ref><ref>[http://seekingalpha.com/article/486131-conocophillips-ceo-hosts-phillips-66-analyst-update-conference-call-transcript Seeking Alpha. "ConocoPhillips' CEO Hosts Phillips 66 Analyst Update Conference Call" April 9, 2012]</ref>
 
 
 
===Melaka Refinery===
 
===Melaka Refinery===
 
[[Image:Melaka refinery.jpg|thumb|right|400px|''Melaka Refinery'''  The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products.  Photo Credit: [http://www.hydrocarbons-technology.com/projects/melaka/melaka1.html Hyrdrocarbons Technology] ]]
 
[[Image:Melaka refinery.jpg|thumb|right|400px|''Melaka Refinery'''  The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products.  Photo Credit: [http://www.hydrocarbons-technology.com/projects/melaka/melaka1.html Hyrdrocarbons Technology] ]]
 
====News and Views from the Melaka Refinery====
 
====News and Views from the Melaka Refinery====
 +
 +
=====November 12, 2014: Phillips to Sell Maleka Refinery for $635 Million=====
 +
FuelFix reported on November 12, 2014 that Phillips has made a deal to sell its 47-percent stake in a Malaysian refinery for $635 million in cash that is expected to close at the end of 2014. “This divestiture allows us to redeploy resources to more strategic areas of our business,” said Larry Ziemba, executive vice president of refining for Phillips 66, in a written statement. Dean Acosta, a spokesman for Phillips 66, said the firm won’t have a refining presence in Asia after the deal closes. “We continually evaluate the assets in our portfolio to identify opportunities to significantly enhance returns,” Acosta said in an email. “We do that through portfolio management as well as improving margins on our current assets.”<ref>[http://fuelfix.com/blog/2014/11/12/phillips-66-to-sell-refining-stake-in-asia-for-635m/ FuelFix. "Phillips 66 to sell refining stake in Asia for $635M"  November 12, 2014.]</ref>
 +
 +
=====October 29, 2014: Sale of Maleka Refinery is an Ongoing Process=====
 +
Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that the sale of the Melaka Refinery is an ongoing process. "We have an ongoing process at Melaka. And I think our expectation is certainly end of this year, first quarter next year, that we'll complete that process."<ref>[http://investor.phillips66.com/files/doc_presentations/2014/Earnings/PSX-Transcript-2014-10-29T15_00.pdf Phillips 66.  "PSX - Q3 2014 Phillips 66 Earnings Call" October 29, 2014.]</ref>
 +
 +
=====August 29, 2014: Second Unit Shut Down at Maleka Refinery=====
 +
MSN reported on August 29, 2014 that Petronas is running the 100,000 barrels-per-day (bpd) Malacca refinery it jointly owns with US oil company Phillips 66 at a lower rate than usual after unexpectedly shutting a secondary unit. The refinery's crude distillation unit (CDU) will be running at a lower operating rate than normal from August 21 to September 8 while the secondary unit is being repaired, one of the sources said. Petronas operates two CDUs at the Malacca petroleum complex that run as standalone operations. It solely owns a 100,000-bpd CDU that mainly processes sweet crude.<ref>[http://news.malaysia.msn.com/tmi/petronas-abruptly-shuts-secondary-refining-unit-say-sources MSN.  "Petronas abruptly shuts secondary refining unit, say sources"  August 29, 2014.]</ref>
  
 
=====February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014=====
 
=====February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014=====
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=====December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia=====
 
=====December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia=====
 
Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.<ref>[http://www.reuters.com/article/2012/12/13/phillips66-forecast-sales-idUSL1E8ND9OE20121213 Reuters. "Phillips considers sale of Irish, Malaysian refining stakes" December 13, 2012.]</ref>
 
Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.<ref>[http://www.reuters.com/article/2012/12/13/phillips66-forecast-sales-idUSL1E8ND9OE20121213 Reuters. "Phillips considers sale of Irish, Malaysian refining stakes" December 13, 2012.]</ref>
 
==Phillips 66 Worldwide Refineries==
 
Phillips has the following worldwide refineries:<ref>[http://www.newworldencyclopedia.org/entry/ConocoPhillips New World Encyclopedia. "ConocoPhillips" retrieved May 6, 2012.]</ref>
 
 
{| border=1 cellspacing=0
 
!scope="col" width="150" | Country
 
!scope="col" width="200" | Name
 
!scope="col" width="150" | Location
 
!scope="col" width="100" | Capacity (KBD)
 
!scope="col" width="100" | Nelson Complexity Factor
 
!scope="col" width="100" | Clean Product Yield
 
|-
 
|Gulf Coast US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Alliance_Refinery Alliance Refinery (AL)]||Belle Chasse, LA||align="center"|247||align="center"|12.5||align="center"|86%
 
|-
 
|Eastern US and Europe||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Bayway_Refinery Bayway Refinery (BW)]||Linden, NJ||align="center"|238||align="center"|8.4||align="center"|90%
 
|-
 
|Central US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Billings_Refinery Billings Refinery (BI)]||Billings, MT||align="center"|118||align="center"|14.4||align="center"|89%
 
|-
 
|Central US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Borger_Refinery Borger Refinery (BG)]|| Borger, TX||align="center"|146||align="center"|12.3||align="center"|89%
 
|-
 
|Western US and Asia||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Ferndale_Refinery Ferndale Refinery (FN)]||Ferndale, WA||align="center"|105||align="center"|7.0||align="center"|75%
 
|-
 
|Eastern US and Europe||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Humber_Refinery Humber Refinery (HU)]||North Linconshire||align="center"|265||align="center"|11.6||align="center"|81%
 
|-
 
|Gulf Coast US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Lake_Charles_Refinery Lake Charles Refinery (LC)]||Westlake, LA||align="center"|239||align="center"|11.2||align="center"|69%
 
|-
 
|Western US and Asia||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Los_Angeles_Refinery Los Angeles Refinery (LA)]||Carson, CA/Wilmington, CA||align="center"|139||align="center"|14.1||align="center"|87%
 
|-
 
|Western US and Asia||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Melaka_Refinery Melaka Refinery in Malaysia (ME)]||Melaka||align="center"|58||align="center"|9.3||align="center"|83%
 
|-
 
|Eastern US and Europe||MIRO Refinery in Germany* (MI)||Karlsruhe||align="center"|56||align="center"|7.9||align="center"|85%
 
|-
 
|Central US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#News_from_the_Ponca_City_Refinery Ponca City Refinery (PC)]||Ponca City, OK||align="center"|187||align="center"|9.8||align="center"|91%
 
|-
 
|Western US and Asia||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#San_Francisco_Refinery San Francisco Refinery (SF)]||Rodeo, CA and Santa Maria, CA||align="center"|120||align="center"|13.5||align="center"|83%
 
|-
 
|Gulf Coast US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Sweeny_Refinery Sweeny Refinery (SW)]||Old Ocean, TX||align="center"|247||align="center"|13.2||align="center"|87%
 
|-
 
|Eastern US and Europe||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Whitegate_Refinery Whitegate Refinery in Ireland (WG)]||Cork (city)|Cork||align="center"|71||align="center"|3.8||align="center"|65%
 
|-
 
|Central US||[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Wood_River_Refinery Wood River Refinery (WR)]||Roxana, IL||align="center"|306||align="center"|12.5||align="center"|85%
 
|}
 
 
* Denotes joint ventures. Crude capacity reflects that proportion.
 
 
==Master Index for Phillips 66 Articles==
 
* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution Phillips 66 Master Article]
 
* [[Phillips 66 Master Index]]
 
* [[Creation of Phillips 66]]
 
* [[Decision to Name the Downstream Company Phillips 66]]
 
* [[Strategic Vision for Phillips 66]]
 
* [[Phillips 66 Capital Programs]]
 
* [[Governance at Phillips 66]]
 
* [[Greg Garland, CEO of Phillips 66]]
 
* [[Members of the Board of Directors of Phillips 66]]
 
* [[Financial Stability of Phillips 66 and Risk Management]]
 
* [[Government Relations at Phillips 66]]
 
* [[Media Relations and Public Relations at Phillips 66]]
 
* [[New Phillips 66 Headquarters]]
 
* [[Litigation and Legal Issues at Phillips 66]]
 
* [[The Stock Market and Phillips 66]]
 
* [[Dividends and Stock Repurchase at Phillips 66]]
 
* [[Stockholder's Meetings at Phillips 66]]
 
* [[Earnings Conferences at Phillips 66]]
 
* [[Investor Conferences at Phillips 66]]
 
* [[Operational Excellence at Phillips 66]]
 
* [[Safety at Phillips 66]]
 
* [[Employee Deaths and Injuries at Phillips 66]]
 
* [[Environmental Issues at Phillips 66]]
 
* [[Refinery and Marketing Business Segment at Phillips 66]]
 
* [[Labor Relations at Phillips 66]]
 
* [[Human Resources at Phillips 66]]
 
* [[Increasing Profitability in the Refining Business Segment at Phillips 66]]
 
* [[Divestiture of Non-Core Assets at Phillips 66]]
 
* [[Marketing and Special Products at Phillips 66]]
 
* [[Technology Development at Phillips 66]]
 
* [[How Much Money Does the Marland Refinery in Ponca City Earn for Phillips 66?]]
 
* [[Ponca City and the "Merger of Equals" with Phillips 66 in 2001]]
 
* [[Ponca City and the Spinoff of Phillips 66 in 2012]]
 
* [[Phillips 66: Ponca City Refinery]]
 
* [[Phillips 66: The Marland Refinery at Ponca City]]
 
* [[Phillips 66: Alliance Refinery]]
 
* [[Phillips 66: Bayway Refinery]]
 
* [[Phillips 66: Billings Refinery]]
 
* [[Phillips 66: Borger Refinery]]
 
* [[Phillips 66: Ferndale Refinery]]
 
* [[Phillips 66: Humber Refinery]]
 
* [[Phillips 66: Lake Charles Refinery]]
 
* [[Phillips 66: Los Angeles Refinery]]
 
* [[Phillips 66: Wilmington Refinery]]
 
* [[Phillips 66: Melaka Refinery]]
 
* [[Phillips 66: San Francisco Refinery]]
 
* [[Phillips 66: Rodeo Refinery]]
 
* [[Phillips 66: Santa Maria Refinery]]
 
* [[Phillips 66: Sweeny Refinery]]
 
* [[Phillips 66: Trainer Refinery]]
 
* [[Phillips 66: Whitegate Refinery]]
 
* [[Phillips 66: Wood River Refinery]]
 
* [[Chemical Business Segment at Phillips 66]]
 
* [[Midstream Business Segment at Phillips 66]]
 
* [[What Independent Financial Analysts Say About Phillips 66]]
 
* [[External Links to Phillips 66]]
 
 
==References==
 
{{reflist}}
 
 
==About the Author==
 
[[Image:Reservoir Hill.jpg|thumb|right|450px|Hugh Pickens]]
 
[http://hughpickens.com Hugh Pickens] (Po-Hi '67) is a physicist who has explored for oil in the Amazon jungle, crossed the [https://en.wikipedia.org/wiki/Rub'_al_Khali empty quarter of Saudi Arabia], and [http://project-tools.com/projects.htm built satellite control stations for Goddard Space Flight Center] all over the world. Retired in 1999, Pickens and his [http://www.thefreelibrary.com/GREEN+SPRING+NAMES+PICKENS+VICE+PRESIDENT+OF+PHYSICIAN+SERVICES-a018294703 wife] moved from Baltimore back to his hometown of Ponca City, Oklahoma in 2005 where he cultivates his square foot garden, mows [https://www.google.com/maps/preview#!q=2301+Donner+Ave%2C+Ponca+City%2C+OK&data=!1m8!1m3!1d3!2d-97.052085!3d36.733001!2m2!1f349.46!2f95.82!4f75!2m7!1e1!2m2!1svvDhInRwrcsKtmDssDlMoQ!2e0!5m2!1svvDhInRwrcsKtmDssDlMoQ!2e0!4m15!2m14!1m13!1s0x87b0f527d270150b%3A0xc6f2815ca3b9fd20!3m8!1m3!1d229448!2d-122.2366068!3d47.6290804!3m2!1i1423!2i1024!4f13.1!4m2!3d36.733934!4d-97.052318&fid=5 nine acres of lawn], [http://poncacityweloveyou.com writes about local history] and [http://flickr.com/photos/20881138@N00/sets/ photographs events] at the Poncan Theatre and [http://thebrokenstatue.com Ponca Playhouse].
 
 
Since 2001 Pickens has edited and published [http://peacecorpsonline.org/frontpage/index.html “Peace Corps Online,”] serving over one million monthly pageviews. His other writing includes contributing over 1,500 stories to [http://hughpickens.com/slashdot/ “Slashdot: News for Nerds,”] and articles for [http://en.wikipedia.org/wiki/User:Reservoirhill Wikipedia], [http://poncacityweloveyou.com “Ponca City, We Love You”], and [http://peacecorpsworldwide.org/pickens-writes-writes/ Peace Corps Worldwide].
 
 
===Articles about Ponca City===
 
* [http://www.pioneerwomanmodels.com/ The Pioneer Woman Models Should Return to Ponca City] July 13, 2007
 
* [http://researchandideas.com/index.php?title=The_Pioneer_Woman_Models_Come_Home The Pioneer Woman Models Come Home to Ponca City] February 26, 2010
 
* [http://researchandideas.com/index.php?title=Stanley_Ann_Dunham President Barack Obama's Mother Grew Up in Ponca City] February 6, 2009
 
* [http://peacecorpsonline.org/standingbear/ Standing Bear Looks to the Future]
 
* [[What to See in Ponca City]]
 
* [http://thebrokenstatue.com/ Ponca Playhouse to Present "The Broken Statue"] January 17, 2012
 
* [[What Ponca City Owes EW Marland]] June 20, 2012
 
* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#How_Much_Money_Does_the_Marland_Refinery_in_Ponca_City_Earn_for_Phillips_66.3F How Much Money Does the Marland Refinery in Ponca City Earn for Phillips 66?] July 23, 2012
 
* [http://researchandideas.com/index.php?title=EW_Marland_and_%22The_Ends_of_the_Earth%22 EW Marland and the Movie "The Ends of the Earth"] May 23, 2013
 
 
===Other Writing===
 
* [[An Independent Evaluation of Phillips 66, its Business Strategy, and Execution]]
 
* [http://researchandideas.com/index.php?title=Jon_Carson Jon Carson is Head of Obama's "Organizing for Action"]
 
* [http://researchandideas.com/index.php?title=A_Biography_of_Screenwriter_and_Director_Chris_Terrio Academy Award Winner Chris Terrio Writes Screenplay about E.W. Marland]
 
* [http://researchandideas.com/index.php?title=NASA%27s_GRO_Remote_Terminal_System_(GRTS)#1998:_NOAA_Fairbanks_Autonomous_Ground_Station Building NASA's NASA's GRO Remote Terminal System (GRTS) in Australia]
 
* [http://researchandideas.com/index.php?title=America%27s_Fresh_Water_Submarines America's Fresh Water Submarines in World War II]
 
* [http://researchandideas.com/index.php?title=Peace_Corps_Director_Aaron_Williams Peace Corps Director Aaron Williams]
 
* [http://researchandideas.com/index.php?title=The_Peace_Corps_Sharp_Incident_in_Kazahkstan The Peace Corps "Sharp Incident" in Kazakhstan]
 
* [http://researchandideas.com/index.php?title=Writing_for_Slashdot Why I enjoy Writing for Slashdot]
 
* [http://peacecorpsonline.typepad.com/poncacityweloveyou/2007/11/writing-for-wik.html Why I enjoy Writing for Wikipedia]
 
* [http://researchandideas.com/index.php?title=Death_Be_Not_Proud Death Be Not Proud]
 
* [http://researchandideas.com/index.php?title=My_Favorite_Christmas My Favorite Christmas]
 
* [http://reservoirhill.org A Victorian Mansion in Baltimore's Reservoir Hill]
 
* [http://peacecorpswriters.org/pages/2001/0111/111hpnogv.html Senate Foreign Relations Committee Hearing on the Nominee for Peace Corps Director]
 
 
===Updates to the Web Site===
 
This web page is frequently updated so check back periodically to see the latest information or subscribe to the rss feed for this article. If you have any information or insights that you would like to see added to this report please contact Hugh Pickens by email at hughpickens AT gmail DOT com.
 
 
===Copyright===
 
The material in this article is licensed under under the Creative Commons under an [http://creativecommons.org/licenses/by-nc-sa/2.0/deed.en| Attribution-Noncommercial-Share Alike 2.0 Generic] license. Except for short, fair use excerpts, the material on this article cannot be used for commercial purposes without permission of Hugh Pickens. Attribution for use of any material from this article must be provided to Hugh Pickens and if used on the web a link must be provided to http://hughpickens.com.
 

Revision as of 19:12, 2 April 2015

Contents

Melaka Refinery

Melaka Refinery' The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products. Photo Credit: Hyrdrocarbons Technology

News and Views from the Melaka Refinery

November 12, 2014: Phillips to Sell Maleka Refinery for $635 Million

FuelFix reported on November 12, 2014 that Phillips has made a deal to sell its 47-percent stake in a Malaysian refinery for $635 million in cash that is expected to close at the end of 2014. “This divestiture allows us to redeploy resources to more strategic areas of our business,” said Larry Ziemba, executive vice president of refining for Phillips 66, in a written statement. Dean Acosta, a spokesman for Phillips 66, said the firm won’t have a refining presence in Asia after the deal closes. “We continually evaluate the assets in our portfolio to identify opportunities to significantly enhance returns,” Acosta said in an email. “We do that through portfolio management as well as improving margins on our current assets.”[1]

October 29, 2014: Sale of Maleka Refinery is an Ongoing Process

Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that the sale of the Melaka Refinery is an ongoing process. "We have an ongoing process at Melaka. And I think our expectation is certainly end of this year, first quarter next year, that we'll complete that process."[2]

August 29, 2014: Second Unit Shut Down at Maleka Refinery

MSN reported on August 29, 2014 that Petronas is running the 100,000 barrels-per-day (bpd) Malacca refinery it jointly owns with US oil company Phillips 66 at a lower rate than usual after unexpectedly shutting a secondary unit. The refinery's crude distillation unit (CDU) will be running at a lower operating rate than normal from August 21 to September 8 while the secondary unit is being repaired, one of the sources said. Petronas operates two CDUs at the Malacca petroleum complex that run as standalone operations. It solely owns a 100,000-bpd CDU that mainly processes sweet crude.[3]

February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips expects to sell Maleka and Whitegate in 2014. "We've gotten very good at selling the good things. I told Clayton we're going to have to get very good at selling the not-so-good things. Certainly [we] have a process underway with Whitegate. We have a process underway with Melaka. What I would say in that you should expect that we will draw those processes to a conclusion in 2014.[4]

October 30, 2013: Garland Says Phillips Still Looking to Sell Its Interest in Melaka Refinery

Garland told analysts at the third quarter earnings conference on October 30, 2013 that Phillips is still looking at "selling possibly our Whitegate refinery in Ireland and our interest in the Melaka refinery in Malaysia, and so those efforts continue. We’re in the process of evaluating specifically the opportunities around Whitegate. So I think those have been the pieces of portfolio for us that long-term are really where the strategic interest is."[5]

July 15, 2013: Melaka Refinery Crude Unit Restarted

Business Times reported on July 15, 2013 that the crude distillation unit at Phillips' Melaka refinery has restarted after being shut since mid-June. he unit, which processes 100,000 barrels per day (bpd), was shut after a fire at the refinery and was expected to be restarted by early July but the refinery has been hit with "technical issues" which caused the CDU to be shut longer than expected. "There was an issue with the steam chamber which is where the fire happened, but it affected the CDU as well," said a source familiar with the matter. The downtime in Melaka resulted in imports of about 1.2 million barrels of gasoline pushing the Asian gasoline margin on July 12 to more than a four-year high of US$16.74 a barrel, a trader estimated. Besides a base oil plant, there are two CDUs in the Melaka refinery that run as standalone operations.[6]

January 30, 2013: Phillips Writes down $564 Million in Equity on Melaka Refinery

Greg Garland told analysts during the fourth quarter earnings conference on January 30, 2013 that had Phillips had taken a charge of $564 million for the impairment of our equity investment in the Melaka refinery. "This impairment was based on significantly lower estimated future refining margins in the region, driven primarily by expected increases in future crude oil pricing over the long term. As such, we determined that the fair value of our investment in Melaka was lower than our carrying value and that this loss in value was other than temporary."[7]

December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia

Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.[8]


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