Petróleos Mexicanos (Pemex) took over the operation of the Deer Park refinery in Texas on Thursday, after concluding the purchase of half of this asset from the Anglo-Dutch company Shell, from whom it will buy the crude to process at this plant during the next 15 years, as part of the 50,005% acquisition agreement through the disbursement of 1,192 million dollars originally agreed for this acquisition.
The general director of the state company, Octavio Romero Oropeza, accompanied by directors of Pemex and Shell Oil Company, reported this Thursday from Texas that the operation was closed so that the Mexican State could keep the entirety of this plant.
Meanwhile, Royal Dutch Shell will supply crude oil to the Deer Park refinery for at least 15 years, according to a document in the possession of Reuters and a source familiar with the matter. As part of the sale agreement, Pemex will absorb most of the current refinery workers for two years, according to the document and one of the sources.
Shell is expected to supply some 200,000 barrels a day of foreign and US crude to Deer Park for at least 15 years, according to the source and the document, dated July. A Pemex unit plans to supply up to 115,000 barrels per day of Mexican crude to Deer Park and receive some 230,000 barrels per day of refined products that could be destined for the Mexican market. The state-owned company separately agreed to supply raw materials to the adjacent Shell chemical plant, the source quoted by Reuters said.
The financial transaction for the purchase of half of the refinery was concluded under the terms agreed upon and announced last May: the value of the operation for the refinery’s assets is 596 million dollars, equivalent to 50% of Shell’s share of the company’s debt.
Additionally, the remaining debt was settled for the 596 million dollars corresponding to 50% of Pemex’s participation; the resources for the operation were covered by the National Infrastructure Fund (Fonadin). As planned, the acquisition was completed after it was reported on December 22 that the Committee on Foreign Investment in the United States (CFIUS) authorized the purchase-sale operation as it had not identified risks in matter of jurisdiction or national security for the United States of America.
The State oil company explained that at the conclusion of the operation and in the presence of engineer Romero Oropeza, the first session of the Deer Park Board of Directors was held, which was made up of the following Pemex officials: Ulises Hernández Romano, general director from PMI International Trade; Victor M. Navarro Cervantes, corporate director of Planning and Performance; Marcos M. Herrería Alamina, corporate director of Administration Services; Jorge L. Basaldúa Ramos, head of Pemex Industrial Transformation, and Manuel Flores Camacho, CEO of PMI North America.
Deer Park has crude processing capacity of 340,000 barrels per day. It can process heavy and light crude oil without generating fuel oil.