The refinery is currently owned by Lazarus Texas Refinery I (LTRI) a wholly owned subsidiary of LEH.
Blue Dolphin would have to refurbish and re-commission the refinery similar to the work conducted at the Nixon facility, another refinery owned by the company, if it decides to go ahead with the acquisition.
The Nixon Facility located in the in the Eagle Ford Shale play, Wilson County, Texas, is currently running about 10,000 barrels of light Eagle Ford crude oil (condensate) per day of.
The Ingleside refinery consists of crude oil and condensate processing equipment, pipeline connections, trucking terminals and related storage, and a barge dock and receiving facility to access the Gulf Intracoastal Waterway at Redfish Bay near Corpus Christi, Texas.
Blue Dolphin chief executive officer and president Jonathan Carroll said there is significant strategic value to the combined crude processing, transportation, as well as supply and distribution capabilities of the refineries at Nixon and Ingleside.
"Access to the Barge Dock creates additional product marketing outlets for the Nixon Facility," Carroll added.
"We expect this water access to expand our midstream opportunities, also creating crude oil marketing opportunities for the Eagle Ford Shale producers near Nixon and other nearby locations."
"The storage, terminal, pipeline, barge, and processing aspects of the Refinery can be restarted and operated independently of each other depending on the business case.
The company will inspect, repair and replace the refinery’s tanks, vessels, pumps, piping, wiring, instrumentation and equipment and perform environmental remedies before starting the operations.
Blue Dolphin will reimburse LEH or LTRI for the cost of any refurbishment, re-commissioning or environmental remediation associated with the Refinery.
