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.
The transaction covers the sale of Shell’s Martinez Refinery and adjacent truck rack and terminal in California. Shell’s associated branded fuel businesses, Aviation terminal, and Catalysts business in the area are not part of this transaction.
Martinez is a high-conversion refinery capable of capturing heavy/sour differentials. It produces a high percentage of on-spec clean product including premium gasoline, diesel and jet fuel. Martinez has a refining capacity of 157,000 barrels per day and a Nelson Complexity Index of 16.1.
Shell and PBF will enter into crude supply and product offtake agreements to supply our branded businesses ensuring that Shell customers will continue to have access to quality Shell branded fuels.
As this deal progresses towards closing, our Goal Zero safety program will remain our utmost priority while also providing focused support and care for our employees throughout this time of change.
Local employees providing dedicated support to Shell’s Martinez Refinery will be offered employment with PBF.
PBF Energy and Shell have agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project which would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility. The detailed feasibility review and planning for this project is expected to occur after closing of the acquisition.
Shell will maintain a significant presence in California with continued investments in its Upstream and New Energies business. "