October 22, 2020

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Shell agrees to sale of Martinez refinery to PBF Energy
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Photo courtesy of Shell

Equilon Enterprises LLC d/b/a Shell Oil Products US, a subsidiary of Royal Dutch Shell plc announced it has reached an agreement for the sale of Shell’s Martinez Refinery in California to PBF Holding Company LLC, a subsidiary of PBF Energy, Inc., for USD1.0 billion consideration plus the value of hydrocarbon inventory, crude oil supply, and product offtake agreements, and other adjustments.

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.

Located 30 miles northeast of San Francisco on about 1,000 acres of land, Shell’s Martinez Refinery which has been in operation since 1915 combines state-of-the-art facilities and equipment to convert up to 165,000 barrels of crude oil per day (bpd) into automotive gasoline, jet fuel, diesel fuel, petroleum coke, industrial fuel oils, liquefied petroleum gas, asphalt, and sulfur. It is currently one of the most complex refineries in the world.

PBF Energy is one of the largest independent petroleum refiners and suppliers of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States. PBF currently owns and operates five domestic oil refineries and related assets with a combined processing capacity of approximately 900,000 bpd. PBF Energy’s refineries are located in California, Delaware, Louisiana, New Jersey, and Ohio.

The transaction is subject to closing conditions and regulatory approvals and is expected to close in 2019.

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