Shell Oil Co., a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its interest in Deer Park Refining Ltd Partnership, a 50-50 joint venture between Shell Oil Co. and P.M.I. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos, or Pemex). The transaction will transfer Shell’s interest in the partnership, and therefore full ownership of the refinery, to Pemex, subject to regulatory approvals.
“Shell did not plan to market its interest in the Deer Park refinery; however, following an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them,” said Huibert Vigeveno, Shell’s Downstream Director. “Pemex has been our strong and active partner at the Deer Park Refinery for nearly 30 years, and we will continue to work with them in an integrated way, including through our on-site chemicals facility, which Shell will retain. Above all, we remain committed to the wellbeing of our employees and will work closely with Pemex to ensure the continued prioritisation of safe operations. We’re proud of our 90-plus year history as an operator and neighbour at Deer Park and we will continue to play an active role in the community”.
The consideration for this transaction is US$596 million which is a combination of cash and debt, plus the value of hydrocarbon inventory.
In a statement, Shell said that this transaction will allow it to further focus its refining footprint while also maintaining integration optionality and retaining value through its Chemicals and Trading activities.
The transaction is expected to close in 4Q21.
Read the article online at: https://www.hydrocarbonengineering.com/refining/25052021/shell-to-sell-interest-in-deer-park-refinery/
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