The Texas City Refinery. Image courtesy of Marathon Petroleum.

Marathon Petroleum has filed a lawsuit against two BP subsidiaries alleging that downstream assets acquired in 2012 had issues that were not disclosed in the sales agreement.

According to Reuters, Marathon alleges that after it took over the Texas City oil refinery and three product terminals in February 2013 the company discovered problems that it claims breached the sales agreement.

The lawsuit was filed in U.S. District Court for Southern Texas by Marathon subsidiary Marathon Petroleum Co. against BP Products North America Inc and BP Pipelines.

“After assuming operation of the refinery, Marathon Petroleum discovered that, in numerous respects, the refinery and the terminals were not in compliance with environmental laws,” according to a copy of the lawsuit seen by Reuters.

Marathon also alleges that BP failed to maintain process safety information for over 3,000 pressure vessels at the plant and that the company did not finish compiling process safety information for the vessels.

Marathon also claims that BP failed to carry out a planned overhaul of an aromatics recovery unit after the sales agreement was signed.

Marathon is seeking to have payments it has been making to BP for servicing retail stations that it acquired as part of the deal terminated as of July 31, 2016, Reuters said.

BP had previously been fined over $87 million by the Occupational Safety and Health Administration after an explosion at the Texas City refinery killed 15 workers and injured 170 other workers.


Leave a Reply