Shell Completes Sale of Deer Park Refinery Stake to Pemex
1/20 2:44 PM
Shell Completes Sale of Deer Park Refinery Stake to Pemex OAKHURST, N.J. (DTN) --- Shell Oil Company, a subsidiary of Royal Dutch Shell plc, announced this afternoon it has completed the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Nortemerica, S.A. De C.V., a subsidiary of Petroleos Mexicanos, for $596 million, a combination of cash and debt. 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 the month of January, which is expected to range between $300 to $350 million. Announced May 24, 2021, the agreement covers the sale of Shell's 50.005% interest in the partnership, and therefore transfers full ownership of the refinery to Pemex. Shell Chemical L.P. will continue to operate its 100% owned Deer Park Chemicals facility, located adjacent to the site. 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. "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. Shell has entered into certain product offtake and crude supply agreements with Pemex for Deer Park Refinery, and employees assigned to the refinery assets were offered employment by Pemex with effect upon closing, in accordance with the transaction. (c) Copyright 2022 DTN, LLC. All rights reserved.
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