BP (NYSE:BP) Raising Minimum of $4.4 Billion Via US Refinery Sales

Saying it wants to focus on plants able to increase diesel production and heavy crude, BP (NYSE:BP) announced in their earnings report they're going to sell about half of its refining capacity in the U.S., which will raise at least $4.4 billion for the oil giant.

This is also part of their effort to divest of assets in order to raise billions to pay for the growing costs associated with the oil spill in the Gulf of Mexico.

Iain Conn, BP’s head of refining and marketing, said about the proposed refinery sales, “These are not average refineries, these are some of the most highly upgraded in the world. We would expect to get a value above the benchmarks.”

Refineries to be sold include those in Carson, California and Texas City, Texas.

BP will keep and focus on U.S. refineries in Cherry Point, Washington and Whiting, Indiana, along with its 50 percent stake in the Toledo, Ohio, plant. The reasoning behind the decision to keep these refineries, according to BP, is because they offer “greater flexibility to refine a range of crude oils including heavy grades, and on average are more diesel-capable than BP’s current portfolio.”

Also being sold by BP, is their infrastructure, power generators and distribution terminals, which should bring the amount raised beyond $4.4 billion.

BP expects to complete the sales sometime in 2012.