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.
Does anyone know what the county tax basis will be for the new owner, PBF–incresaed, decreased or no change?
Somehow this change will impact consumers for the worse. We’ll likely see even higher prices in California. Mark my words.
Why will it impact the consumers for the worse? Shell is already one of the highest priced gas in the Bay Area so the new company can continue to charge the same. Don’t forget the price of gas is already going up in July by 5.6 cents a gallon because Californians voted to increase gas tax to help fund other transportation modes like Bart and ferry service that most West County and Solano County commuters don’t use.
My bad, this tax increase is due to a complicated tax swap decided by our government officials back in 2010!
PBF is a Blackstone managed company. Get ready for it.
Shell finally threw in the towel after a long protracted hassle from our BAAQMB and the poor folks who live and breathe the poison in the air in the streets of Martinez. Welcome to Martinez PBF.
Smart move on Shell’s part though. That $3M fine they paid last year must’ve done it.
I’ll bet Shell has paid closer to $20M in fines to the Gubment since 1915.
I suspect there will be minimal impacts to this area. As long as Shell continues to sponsor Ferrari, I’m good and will continue to buy Shell gas.
BDF will be required to follow the same regulations as Shell. Do you think the new owners should get a pass? Like Amazon tried to do in NYC? Hope not. Re: Ferrari. How about they win some and then we’ll (you and me) all be happy. Right now it’s not very promising. Send Vettel to the ashram for a coupld weeks to settle his nerves might help. I’m sure the pressure inside that shop must be tremendous.
Been working for PBF since they bought Delaware City refinery—-good company to work for. As for high gas prices you bring it on yourself when you cannot control government spending and regulations.
AKA – Electing Liberals/Progressives .