Houston-based Marathon Oil Corporation has finally taken the decision to spin-off it's refinery division.
The decision, which had previously been mooted in 2009 but was postponed because of market conditions, will make Marathon Petroleum Corporation the US' fifth largest oil refiner. Marathon Oil will continue with oil exploration and production activities.
The new company, with a market valuation of $14bn, will be based in Findlay, Ohio, with a portfolio that includes six refineries, with other assets based in the US Midwest, the Gulf Coast and the Southeast regions.
The spin-off involved signficant preparation by parent company Marathon Oil, having offloaded around $1.9bn worth of refining, storage, pipeline and retail assets.
However, Marathon Petroleum is already looking at growth, with a $2.2bn expansion of its Detroit refinery already underway. This will allow the new company to exploit the increase in crude oil flowing from Canada.