Shell completes sale of interest in Deer Park refinery to partner Pemex

HOUSTON, Jan. 20, 2022 /CNW/ -- Shell Oil Company, a subsidiary of Royal Dutch Shell plc, 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. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos, or Pemex) for $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 L.P. will continue to operate its 100% owned Deer Park Chemicals facility located adjacent to the site.

"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. "The team at Deer Park has been instrumental not only in preparing the asset for Pemex operations, but also in continuing a legacy of safety and performance that dates back 92 years. We look forward to remaining a neighbour in the Deer Park community and growing our chemicals business to best meet the needs of our customers while advancing our global energy and chemicals park strategy."

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.

Notes to editors

• 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 $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.
• 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.
• To mark this new chapter and highlight Shell's continued support for the Deer Park community, Shell has provided approximately $2 million in funding for projects benefitting the community.
• Shell is one of America's leading energy companies with interests in 50 states employing more than 12,000 people. Shell's U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, gasoline, lubricants, and other refined products along with renewables such as wind, solar, and mobility options like electric vehicle charging and hydrogen. In the U.S. Shell is also investing in an integrated power business that will provide electricity to millions of homes and businesses.

Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "Shell", "Shell Group" and "Group" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations", respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

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SOURCE Shell