Shell agrees to sale of Martinez Refinery

Source: press release, 11 June 2019

The Martinez Refinery is a high-conversion refinery capable of capturing heavy/sour differentials, with a refining capacity of 157,000 barrels per day
The Martinez Refinery is a high-conversion refinery capable of capturing heavy/sour differentials, with a refining capacity of 157,000 barrels per day (photo: Shell)

Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), a subsidiary of Royal Dutch Shell plc announced it has reached an agreement for the sale of Shell’s Martinez Refinery in California to PBF Holding Company LLC, a subsidiary of PBF Energy, Inc., for USD 1.0 billion consideration plus the value of hydrocarbon inventory, crude oil supply and product offtake agreements, and other adjustments.

This divestment aligns with Shell’s strategy to reshape refining efforts towards a smaller, smarter refining portfolio focused on further integration with Shell Trading hubs, Chemicals, and Marketing.

“This deal is another step in our transformation to high-grade and optimise our portfolio to drive resilient returns,” says Shell’s Downstream Director, John Abbott.

The transaction is subject to closing conditions and regulatory approvals and is expected to close in 2019.