Shell Divests California Refinery
Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell) has formally closed on the sale of the Martinez Refinery in California to PBF Energy, Inc. subsidiary PBF Holding Co. LLC, Royal Dutch Shell plc reported Saturday.
PBF acquired the Bay Area refinery and the facility’s inventory for $1.2 billion, and the deal includes crude oil supply, product offtake agreements and other adjustments, Shell added. As a June 12, 2019, Rigzone article announcing the transaction points out, the Martinez facility was Shell’s only refinery in the Golden State. The deal gives PBF its second refinery on the West Coast.
“The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations,” commented PBF Chairman and CEO Tom Nimbley in a separate written statement. “Martinez is a top-tier asset, is a perfect complement to our existing assets and provides increased opportunities for PBF’s West Coast to deliver value.”
Located 30 miles (48 kilometers) northeast of San Francisco, the 157,000-barrel-per-day high-conversion Martinez Refinery boasts a Nelson Complexity Index of 16.1, noted PBF, which also owns a former Exxon Mobil Corp. refinery in Los Angeles County. PBF and Shell stated that they have agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project at Martinez that would repurpose existing idled equipment.
According to Shell, crude supply and product offtake agreements from the sale will enable PBF to supply Shell-branded businesses with Shell-branded fuels. The supermajor added that the deal excludes its associated branded fuel businesses, aviation terminal and Catalysts business in the area.
Shell stated that its presence in California will focus on Upstream and New Energies business investments. It also noted that local employees providing dedicated support to the Martinez facility were all offered employment with PBF.
“We welcome Martinez’s professional workforce to the PBF family,” said Nimbley. “We are committed to maintaining the high operational standards of the refinery and, through continued safe, reliable and environmentally responsible operations, earning the privilege of being a respected member of the Martinez and Contra Costa County communities.”
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