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Tuesday, November 4, 2014

UK Milford Haven refinery sale fails; plant to be dismantled, (NYSE: MUR)

A deal to rescue the UK's Milford Haven oil refinery has collapsed, operator Murphy Oil said late on Tuesday, forcing it to permanently shutter the plant as the latest victim of a deep slump in the European refining industry.Klesch Refining Limited, run by billionaire investor Gary Klesch, had agreed to purchase the idled plant in July, but the deal was contingent on a combination of government support and private financing from banks. The deadline for that passed on Oct. 31, according to a source familiar with the matter.Murco Petroleum, a subsidiary of the U.S.-based Murphy Oil Corp, announced that the sale of the 135,000 barrels per day Milford Haven refinery, Britain's smallest, and related terminal assets has been cancelled."The parties are not engaged in further discussions," Murco said in the statement.

Murphy Oil Corporation is a worldwide oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. Shares of MUR fell by 2.29% or $-1.2/share to $51.24. In the past year, the shares have traded as low as $49.38 and as high as $68.43. On average, 1411290 shares of MUR exchange hands on a given day and today's volume is recorded at 1503581.