Murphy Oil buys ethanol plant

The VeraSun Energy ethanol plant located in Hankinson was sold last week to Murphy Oil Corporation. The sale of the plant gives 49 workers job security, producers another market for their corn and is promising to Hankinson’s future.

Murphy Oil Corp., based in El Dorado, Ark., purchased the plant for $92 million. The company plans to invest an additional $15 million in working capital into the facility.

The Hankinson Community Development Corporation said the ethanol plant may bring more industry to the city, said Bob Wurl, board member. The city group felt confident the plant would be sold, and they look forward to meeting the new owners.

Advertisement

*

*


“From a development standpoint, the natural gas line we put in for the ethanol plant is a main ingredient for other industry,” Wurl said. “Natural gas, rail and highway service seem to be key things. Certainly industry leads to additional industry.”

The VeraSun plant was placed on hold after the company filed for Chapter 11 bankruptcy protection last fall. AgStar Financial Services took over some of the VeraSun plants, including the Hankinson facility.

The sale represents the AgStar lending groups' final VeraSun Energy plant sale. The lending group recently closed on the purchase of the Dyersville, Iowa, and Janesville, Minn., ethanol plants.

“Murphy Oil Corp. has a long tradition of being a part of the communities they serve and we’re excited to know this plant will soon be running again,” said Paul DeBriyn, president and CEO of AgStar Financial Services in a press release. “This sale will provide jobs, create opportunities for area farmers to sell corn and produce ethanol - which is good news for the industry.”

Although the Hankinson plant has been idle for almost a year, Wes Plummer, plant manager, said his workers have been hard at work as they waited for the plant to sell. They’ve been training, painting and organizing the plant. The only thing they haven’t done is produce ethanol. Now corn is on its way through the rail line and trucks again unloading at the plant.

“Yesterday was better than your best Christmas,” Plummer said. “The excitement throughout the plant is obvious. All of us are glad to see the plant back in production.”

Plummer is looking forward to working with Murphy Oil. He said the company could be based out of North Dakota, rather than Arkansas, as the owners and managers are down-to-earth people.

“They speak rationally, are helpful and generally good to work with,” he said. “We are in a better situation with Murphy Oil than we ever were with VeraSun.”

Hankinson Mayor Joe O’Meara said the sale looks promising to the city’s future. The city can begin pumping water again, which gives the city another source of revenue.

Wurl credits AgStar with the sale. The lending institution stepped in after VeraSun’s bankruptcy and maintained the existing work force. This, in turn, meant Murphy Oil Corp. could walk in, fire up the plant and begin producing ethanol in a few days, Wurl said.

Murphy Oil has always blended ethanol with their gasoline, Plummer said. Because they now own the Hankinson plant Murphy has a guaranteed source for ethanol and the plant has a place to sell their product. The ethanol plant in Hankinson is the company’s first renewable fuels venture.

Murphy Oil is an international oil and gas company which conducts business through various operating subsidiaries. The company produces oil and/or natural gas in the United States, Canada, the United Kingdom, Malaysia and the Republic of Congo, and conducts exploration activities worldwide.

source: wahpetondailynews