Shell Reaches Agreement in Sale of Deer Park Refining LP

Shell Oil Company, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Norteamerica SA De C.V., a subsidiary of Petroleos Mexicanos (Pemex). The consideration for this transaction is $596 million, which is a combination of cash and debt plus the value of hydrocarbon inventory.

The transaction will transfer Shell’s interest in the partnership and therefore full ownership of the refinery to Pemex, subject to regulatory approvals. It is expected to close in fourth quarter 2021.

“Shell did not plan to market its interest in the Deer Park refinery, however, following an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them,” said Huibert Vigeveno, Shell’s downstream director. “Pemex has been our strong and active partner at the Deer Park Refinery for nearly 30 years, and we will continue to work with them in an integrated way including through our on-site chemicals facility, which Shell will retain. Above all, we remain committed to the well-being of our employees and will work closely with Pemex to ensure the continued prioritization of safe operations.” This transaction allows Shell to further focus its refining footprint while also maintaining integration options and retaining value through its chemicals and trading activities.