Chevron Corp. subsidiary Chevron USA Inc. has signed a share purchase agreement with Petroleo Brasileiro SA (Petrobras) subsidiary Petrobras America Inc. (PAI) to acquire all outstanding shares and equity interests of Pasadena Refining System Inc. (PRSI), which includes the refinery in Pasadena, Tex., and PRSI Trading LLC for $350 million, excluding working capital.
As part of the agreement, signed on Jan. 30, Chevron USA will acquire the 110,000-b/d Pasadena refinery, direct pipeline connections to increasing industry and equity crude oil production, connections to major product pipelines, as well as waterborne access to receive and ship crude oil and refined products, Chevron said.
The 466-acre Pasadena refining complex includes the 323-acre refinery, 5.1 million bbl of oil and products storage capacity, an associated marine terminal and logistics system, and 143 acres of additional land along the Houston Ship Channel usable for potential future expansion.
“This expansion of our [US] Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula, [Miss.],” said Pierre Breber, executive vice-president of Chevron downstream and chemicals.
A timeframe for closing of the transaction, which is subject to customary closing conditions—including regulatory approvals—was not disclosed.
Announcement of the proposed deal follows PAI’s earlier determination that the Pasadena system does not align with Petrobras’s strategic focus but may have higher value for the right investor (OGJ Online, May 4, 2018).
Contact Robert Brelsford at [email protected].
