Shell to sell Deer Park Refinery stake to Pemex
Source: Tank News International
Shell is set to sell its 50.005 percent stake in the Deer Park Refinery in Texas, US, to its joint venture partner Pemex.
Subject to regulatory approvals the transaction will transfer Shell’s interest in the partnership, and therefore full ownership of the refinery, to Pemex.
Shell’s downstream director Huibert Vigeveno said: “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.
“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.”
Pemex will pay $596 million (€478.5 million) in a combination of cash and debt, plus the value of the hydrocarbon inventory.
According to the company, this transaction allows Shell 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 Q4 2021.
For more information visit www.shell.com