The date to close the sale of the majority stake of Royal Dutch Shell Plc at the Deer Park refinery, Texas, to Petróleos Mexicano (Pemex) it has been delayed until the deal receives approval from federal regulators, a source familiar with the matter said Tuesday.
Shell announced in May that it would sell its 50,005 percent stake in the 302,800 barrels per day (bpd) refinery to partner Pemex for $ 596 million. The sale was expected to close as early as Wednesday.
The refinery is among the largest in the United States with a crude capacity of 340 thousand barrels per day and operates as Deer Park Refining Limited Partnership, a 50-50 joint venture formed in 1993 between Shell Oil Company and Pemex.
Since 1993, the Shell-Pemex partnership has made significant investments in refinery upgrades, providing increased refining capacity and flexibility, as well as increased opportunities to market a wide range of petroleum products throughout North America.
Deer Park Refining LP predominantly processes acidic crude oil, and Mexico imports more than half of the crude processed. The site also processes crude from Africa, South America, the United States and other countries. Products manufactured at the refinery include: gasoline, aviation fuels, diesel fuels, ship fuel, and petroleum coke.
The original 800-acre refinery site was chosen for its location along the Houston Ship Channel. In the 1940s, Shell added a chemical plant. Between 1945 and 1950, the site completed major expansions in addition to refining and chemical operations.