Shell Oil Company, a subsidiary of Royal Dutch Shell, agreed to sell its interest in the Deer Park, TX refinery to partner Petroleos Mexicanos (Pemex) for about $596 million.
The transaction will transfer Shell's interest in the partnership, and therefore full ownership of the refinery, to Pemex, subject to regulatory approvals.
"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," said Huibert Vigeveno, Shell's downstream director.
"Pemex has been our strong and active partner at the Deer Park Refinery for nearly 30 years, and we will continue to work with them in an integrated way, including through our on-site chemicals facility, which Shell will retain. Above all, we remain committed to the wellbeing of our employees and will work closely with Pemex to ensure the continued prioritization of safe operations. We're proud of our 90-plus year history as an operator and neighbor at Deer Park and we will continue to play an active role in the community."
The consideration for this transaction, which is expected to close in Q4 2021, is a combination of cash and debt, plus the value of hydrocarbon inventory.
In a tweet on Monday, Mexican President Andres Manuel Lopez Obrador praised the buyout that makes Pemex the refinery's sole owner and gives it the first ownership of a plant outside of Mexico. The refinery, shipping docks and an adjacent chemical plant that Shell will retain ownership covers 2,300 acres outside of Houston.
