Shell Completes Deer Park Refinery Stake Sale To Pemex
Energy supermajor Shell has completed the sale of its interest in Deer Park Refining Limited Partnership to Mexican state-owned company Petroleos Mexicanos or Pemex.
Deer Park Refining Limited Partnership is a 50-50 joint venture between Shell Oil Company – a Shell subsidiary – and P.M.I. Norteamerica – a subsidiary of Pemex.
The agreement covers the sale of Shell’s 50.005 percent interest in the partnership and therefore transfers full ownership of the refinery to Pemex for $596 million in a combination of cash and debt.
Shell Chemical L.P. will continue to operate its 100 percent owned Deer Park Chemicals facility located adjacent to the site.
“The completion of this sale marks the start of a new chapter of our history in Deer Park as we’ve worked closely with Pemex over the past few months to ensure a safe and responsible handover of operations for the refinery,” said Huibert Vigeveno, Shell’s Downstream Director.
“The team at Deer Park has been instrumental not only in preparing the asset for Pemex operations but also in continuing a legacy of safety and performance that dates back 92 years. We look forward to remaining a neighbor in the Deer Park community and growing our chemicals business to best meet the needs of our customers while advancing our global energy and chemicals park strategy,” he added.
As part of its Powering Progress strategy, Shell plans to consolidate its refinery footprint to five core energy and chemicals parks.
These locations will maximize the integration benefits of conventional fuels and chemicals production while also offering new low carbon fuels and performance chemicals. They also offer future potential hubs for sequestration.
To remind, Shell and Pemex announced in May 2021 that they signed a sales agreement for Pemex to acquire Shell’s interest in Deer Park Refining.
A further amount of $325 million was received for the value attributed to the hydrocarbon inventory at the time of closing. The final amount for the hydrocarbon inventory will depend on volume measurements and average market prices for January, which is expected to range between $300 to $350 million.
Employees assigned to the refinery assets were offered employment by Pemex with effect upon closing under the transaction.
Worth noting, Shell has entered into certain product offtake and crude supply agreements with Pemex for Deer Park Refinery.
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