August 1, 2011 [OPIS] - Valero Energy Corporation said on Monday that it has completed its transaction of Chevron's 220,000-b/d Pembroke refinery in Wales, U.K., as well as extensive marketing and logistics assets throughout the United Kingdom and Ireland.
The purchase price was $730 million, excluding working capital, and was funded from available cash.
The sale price of that refinery was not adjusted despite a deadly fire at Pembroke in June, Bill Day, a Valero spokesman, told OPIS. In June, some industry sources had expected the original price tag for the refinery to be adjusted to reflect the damages at the refinery caused by the fire.
The completion of the company’s first European refinery will push forward its “strong Atlantic Basin strategy.” Valero is aiming to boost the trading and supplies synergies at its Aruba, Quebec City and Pembroke refineries.
Valero went ahead with the acquisition despite a fire at the Welsh refinery in June, which casted some doubts about the deal or possible price readjustment.
Chevron said on June 3 that four contract workers were killed in an explosion at its Pembroke refinery. The refinery had remained operational during and after the fire. The fire was a result of an explosion in a 730 cubic meter storage tank whilst maintenance work was carried out, damage was also caused to an adjacent storage tank.
Meanwhile, Valero shares on the New York Stock Exchange was 28cts higher than the previous close at $25.12, with the 52-week range at $15.49-$31.12.
