June 17, 2019 [SF Gate] – Shell Oil has agreed to sell their refinery in Martinez to a subsidiary of PBF Energy for $1 billion, with additional money for the value of their hydrocarbon inventory and other adjustments.
Shell executives issued a statement calling it a divestment made as part of a strategy to “reshape their refining efforts” toward a smaller, smarter portfolio.
The transaction is still subject to regulatory approval and other conditions but Shell hopes it will go through in 2019.
PBF says the acquisition will increase their throughput to over 1 million barrels per day.
“Martinez is one of the most complex refineries in the country and a top-tier asset,” PBF Chairman and CEO Tom Nimbley said in a statement issued Tuesday.
“This acquisition will provide increased opportunities for PBF’s expanding West Coast operations to deliver enhanced value and returns in the favorable markets ahead including tangible synergies for our two-refinery West Coast system,” Nimbley said.
The 860-acre facility includes a deepwater marine terminal, oil storage and railway distribution terminals.