Shell wraps up $1.2bn Martinez oil refinery sale to PBF
Martinez oil refinery sale : Equilon Enterprises, which trades as Shell Oil Products US, a subsidiary of Royal Dutch Shell, has formally wrapped up the $1.2 billion sale of the Martinez Refinery in California to PBF Holding Company, a subsidiary of PBF Energy.
The sale, which was announced in July 2019, includes the oil refinery and inventory apart from crude oil supply and product offtake agreements, and other adjustments.
At the time of signing the deal, Shell said that the Martinez oil refinery sale is in line with its strategy to reshape refining efforts to create a smaller, smarter refining portfolio focused on more integration with Shell Trading hubs, Chemicals, and Marketing.
The deal covered the adjacent truck rack and terminal as well.
Shell’s associated branded fuel businesses, catalysts business, and aviation terminal in the area are not included in the transaction.
Tom Nimbley – PBF Chairman and CEO, commenting on Martinez oil refinery sale, said: “We welcome Martinez’s professional workforce to the PBF family. 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.
“The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations. Martinez is a top-tier asset, is a perfect complement to our existing assets and provides increased opportunities for PBF’s West Coast operations to deliver value.”
The Martinez oil refinery, which has a refining capacity of 157,000 barrels per day, is claimed to be a high-conversion refinery which has a capacity to capture heavy/sour differentials. The oil refinery in California is said to produce a high percentage of on-spec clean product including premium gasoline, jet fuel, and diesel.
Shell and PBF have signed crude supply and product offtake agreements for the supply of the former’s branded businesses so that Shell’s customers will continue to have access to Shell-branded fuels.
Shell Oil Products US on the Martinez oil refinery sale stated: “Shell is very proud of the relationship we have built and maintained with the city and people of Martinez over the many years we’ve operated side-by-side with the Martinez community making several notable achievements on safety, reliability, performance, and community involvement.
“As we turn over ownership of the Martinez Refinery to PBF, we offer our many thanks to the City and community of Martinez for all they have done to support and partner with Shell and our employees over the last 100 years.”