Tesoro Alaska Company to Position Tractor Tug Year-Round in Nikiski

Business Wire, July 30, 2007

KENAI, Alaska -- Tesoro Alaska Company ("Tesoro") (NYSE:TSO) today announced that to enhance safety and environmental protection it will position a tractor tug at the company's Nikiski refinery on a year-round basis. Since January of this year, Tesoro has chartered a tractor tug, the Protector, to assist tankers arriving and departing from the Tesoro dock in Nikiski. The company is currently working with Crowley Marine Services to modify a new tractor tug, the Vigilant, with improvements including ice strengthening features for ice and severe winter conditions that are common in Cook Inlet.

"We are making this investment for Tesoro Alaska because positioning a tractor tug at Nikiski on a year-round basis is an additional enhancement to our safety and environmental programs. It is a major new commitment to the community, our employees, the State, Coast Guard and marine vessels and barges, of the emphasis we place on safety and the environment," said Captain Tim Plummer, President of Tesoro Maritime.

Cook Inlet Regional Citizens Advisory Council Executive Director Mike Munger said, "Tesoro should be applauded for their commitment to navigational safety by bringing this tug into Cook Inlet. It is a rare occurrence to see any corporation go above and beyond regulatory compliance. Tesoro decided that this is the right thing to do and the Council certainly appreciates this proactive measure."

The Vigilant will be dedicated to Tesoro's operations but available to others when scheduling allows. The Vigilant is scheduled to be in service in early November, and until then, the Protector will continue to assist ships in Nikiski.

"We have effectively utilized the dedicated tractor tug and are pleased to continue this level of support to our Alaska operations," said Steve Hansen, Kenai refinery manager.

The Vigilant, a 6,700-horsepower, Z-Drive tractor tug, will be time-chartered by Tesoro and operated by Crowley Marine Services.

Tesoro Corporation, a Fortune 150 Company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries operates seven refineries in the western United States with a combined capacity of approximately 660,000 barrels per day. Tesoro's retail-marketing system includes over 880 branded retail stations, of which more than 460 are company owned retail stations.