Shell Completes Sale of Interest in Deer Park Refinery to Pemex
Strategic Research Institute
Published on :
24 Jan, 2022, 5:30 am
Shell Oil Company has completed the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and PMI Norteamerica, a subsidiary of Petroleos Mexicanos or Pemex, for USD 596 million, a combination of cash and debt. 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 will continue to operate its 100% owned Deer Park Chemicals facility located adjacent to the site.
On May 24, 2021, Shell and Pemex announced that they had signed a sales agreement for Pemex to acquire Shell’s 50.005% interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell and Pemex. A further amount of USD 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 USD 300-350 million. Employees assigned to the refinery assets were offered employment by Pemex with effect upon closing in accordance with the transaction. Shell has entered into certain product offtake and crude supply agreements with Pemex for Deer Park Refinery.
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.