Equilon Enterprises, a subsidiary of Royal Dutch Shell, announced it has reached an agreement for the sale of Shell’s Martinez Refinery in California to PBF Holding Company, a subsidiary of PBF Energy, for $1bn 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,” said Shell’s downstream director, John Abbott.
The transaction is subject to closing conditions and regulatory approvals and is expected to close in 2019.
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