Shell is to sell its 50.005% stake in the 340,000 bpd Deer Park Refinery in Texas, US, to its joint venture partner Pemex.
‘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,’ says Huibert Vigeveno, Shell’s downstream director.
Pemex will pay US$596 million (€478.5 million) in a combination of cash and debt, plus the value of the hydrocarbon inventory which is thought to be in the region of US$250–$350 million, for Shell’s stake in the refinery. Following the completion of the transaction, expected in Q4 2021, Pemex will own 100% of the refinery. Vivgeveno says that Shell will continue to work closely with Pemex.
Shell will continue to own and operate the chemicals facility next to the refinery, and says that the US will remain a key manufacturing hub. In its 2020 Q3 results, the company set out plans to reduce its refining portfolio to a smaller set of core sites integrated with chemicals and trading.