Cross Oil Refinery Changes Hands


Martin Midstream Partners on Nov. 25 closed on its acquisition of specialty naphthenic lubricant processing assets from Cross Oil Refining and Marketing, paying $45 million in a stock transaction.

The acquired assets consist mainly of a 7,500 barrel per day naphthenic base oil refinery in Smackover, Ark., that has more than 475,000 barrels of related storage capacity.

Cross is a wholly-owned subsidiary of Martin Resource Management Corp., which also owns Kilgore, Texas-based Martin Midstreams general partner. Martin Resource Management will continue to market and distribute all finished products under the Cross brand name. In addition, it will continue to own and operate the Cross packaging business.

In connection with the acquisition, Martin Midstream said it and Martin Resource Management have entered into a 12-year, fee for services-based tolling agreement. Martin Resource Management will pay Martin Midstream for the processing of crude oil into finished products, including naphthenic base oils, distillates, asphalt and other immediate cuts.

Martin Midstream Partners primary business lines include terminal and storage services for petroleum products and byproducts, natural gas gathering and distribution services, marine transportation services for petroleum products and by-products, and sulfur and sulfur-based products processing, manufacturing, marketing and distribution.

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