Saba Petroleum Co.: The oil company has...

Saba Petroleum Co.: The oil company has agreed to purchase an oil refinery and a 372-acre tract in the Santa Maria Valley area of Santa Barbara County from Conoco Inc., the companies said Tuesday.

Saba will use the tract to turn heavy crude oil into asphalt and other lighter byproducts, said Saba President Ilyas Chaudhary. Saba will use equity capital and borrowings to finance the acquisition.

Irvine-based Saba, an independent oil and gas production company, has field offices in Midland, Tex., and Saticoy, Calif.