THE HAGUE, Netherlands, May 24, 2021 / PRNewswire / – Shell Oil Company, a subsidiary of Royal Dutch Shell plc, has entered into an agreement to sell its stake in Deer Park Refining Limited Partnership, a 50/50 joint venture between Shell Oil Company and PMI Norteamerica, SA De CV (a subsidiary of Petroleos Mexicanos or Pemex). The transaction will transfer Shell’s stake in the partnership, and therefore full ownership of the refinery, to Pemex, subject to regulatory approvals.

“Shell did not intend to market its stake in the Deer park refinery; however, following an unsolicited offer from Pemex, we reached an agreement to transfer our stake in the partnership to them, ”said Huibert Vigeveno, Downstream Director of Shell. “Pemex has been our strong and active partner at the Deer Park Refinery for almost 30 years, and we will continue to work with them in an integrated fashion, including through our on-site chemicals plant, which Shell will retain. Above all, we remain committed to the well-being of our employees and will work closely with Pemex to ensure continued prioritization of safe operations. We are proud of our 90 year history as an operator and neighbor at Deer park and we will continue to play an active role in the community ”.

The counterpart of this transaction is $ 596 million which is a combination of cash and debt plus the value of hydrocarbon stocks. This transaction allows Shell to further focus its refining footprint while maintaining the optionality of integration and retaining value through its chemicals and trading activities.

The transaction is expected to close in the fourth quarter of 2021.

Notes to Editors

  • The transaction involves the sale of Shell Oil Company’s 50.005% interest in Deer Park Refining Limited Partnership. Shell Chemical LP will continue to operate its 100% owned Deer Park Chemicals facility located adjacent to the site.
  • Deer park employees will be assigned to the assets of the refinery or chemical plant. Employees assigned to the assets of the refinery being divested will be offered employment by Pemex with effect at closing in accordance with the transaction, and employees assigned to the assets of the chemical plant not included in the divestment will continue. to work at Shell. Pemex will recognize the United Steel Workers and adopt the collective agreement.
  • The Deer Park refinery has a crude oil capacity of 340,000 barrels per day. The refinery processes crudes from Mexico, Canada, United States, Africa and South America. Products produced by the refinery include gasoline, aviation fuels, diesel fuels, marine fuel and petroleum coke.
  • The stock of hydrocarbons will be valued at closing based on actual volumes and prevailing market prices. The current value of the hydrocarbon inventory would be between $ 250 at $ 350 million in cash assuming current market prices and historical inventory volumes under normal operating conditions
  • Deer Park Refining Limited Partnership is proportionately consolidated in Royal Dutch Shell plc’s International Financial Reporting Standards results.
  • In our third quarter 2020 results, we presented the future of our chemicals and refining businesses. Shell plans to focus its refining portfolio on a smaller set of core sites that are integrated with Chemicals and Trading, which we call the Energy and Chemical Parks. These sites will maximize the benefits of integrating conventional fuels and chemical production while also offering new low carbon fuels and performance chemicals. They also offer potential future centers of sequestration.
  • United States will remain a key global manufacturing center for Shell. Shell will maintain a significant presence in Texas thanks to its chemical plant Deer park and its activities in the Permian Basin, and in Louisiana thanks to its integrated refining and chemicals site at Norco, its chemical plant in Geismar, intermediate infrastructure assets, branded commercial presence, Gulf of Mexico operations and offices in Houston and New Orleans. Shell will also maintain its commercial presence and continue to honor branded wholesale agreements in the Gulf Coast region. In addition, Shell will continue to invest in its Pennsylvania chemicals project.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Royal Dutch Shell“are sometimes used for convenience when reference is made to Royal Dutch Shell plc and its subsidiaries in general. Similarly, the words “we”, “our” and “our” are also used to designate 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 press release refer to the entities over which Royal Dutch Shell plc has direct or indirect control of it. Unincorporated entities and arrangements over which Shell exercises joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell exercises significant influence but neither control nor joint control are called “associates”. The term “Shell Interest” is used for convenience to denote the direct and / or indirect interest held by Shell in an unincorporated entity or partnership, after exclusion of any third party interest.

This press release contains forward-looking statements (within the meaning of the US Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and business of Royal Dutch Shell. All statements other than statements of historical fact are, or may be considered, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements include, among others, statements regarding the potential exposure Royal Dutch Shell market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by the use of terms and expressions such as “objective”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “” expect “,” goals ”, ” intend ”, ” may ”, ” goals ”, ” outlook ”, ” plan ”, ” probably ”, ” project ”, ” risks ”, ” plan ”, ” seek ”, ” should ”, ” target ”, ” will ” and similar terms and expressions. A number of factors could influence the future activities of Royal Dutch Shell and could cause these results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) fluctuations in the prices of crude oil and natural gas; (b) changes in demand for Shell products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and competition from industry; (g) environmental and physical risks; (h) the risks associated with identifying suitable properties and potential acquisition targets, and successfully negotiating and concluding such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; j) legislative, fiscal and regulatory developments, including regulatory measures aimed at combating climate change; k) economic and financial market conditions in various countries and regions; (l) political risks, including risks of expropriation and renegotiation of the terms of contracts with government entities, delays or progress in project approval and delays in reimbursement of shared costs; (m) the risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) epidemic; and (n) changes in trading conditions. There can be no assurance that future dividend payments will equal or exceed prior dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Other risk factors that may affect future results are indicated in Royal Dutch Shell Form 20-F for the year ended December 31, 2020 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, May 24, 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertakes to publicly update or revise any forward-looking statement as of the following new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from forward-looking statements contained in this press release.

We may have used certain terms, such as Resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our SEC filings. Investors are urged to carefully review the disclosure in our Form 20-F, File No. 1-32575, available on the SEC website. www.sec.gov.


Related links



Leave a Reply

Your email address will not be published.