USA: Business Deal Shell to Sell Martinez Refinery to PBF Energy
Shell has reached an agreement with PBF Holding Company, a subsidiary of PBF Energy regarding the sale of Shell’s Martinez Refinery in California, USA. The deal is in line with Shell’s strategy to transform its refining business into a smaller and smarter portfolio.
USA – Equilon Enterprises d/b/a Shell Oil Products US (Shell), a subsidiary of Royal Dutch Shell has recently announced that it has reached an agreement with PBF Holding Company, a subsidiary of PBF Energy for the sale of Shell’s Martinez Refinery. The refinery is located in California and the agreement involves a consideration of 1.0 billion dollar 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 optimising our portfolio to drive resilient returns,” said Shell’s Downstream Director, John Abbott.
The transaction is subject to closing conditions as well as regulatory approvals and is expected to close in 2019.