Motiva Joint Venture Completes Purchase & Sale Agreement With Premcor for Delaware City Refinery
March 30 2004 - 5:00PM
PR Newswire (US)
Motiva Joint Venture Completes Purchase & Sale Agreement With
Premcor for Delaware City Refinery Shell Continues Efforts to
Re-Align Portfolio HOUSTON, March 30 /PRNewswire/ -- Shell Oil
Products US announced today that Motiva Enterprises LLC has
completed a Purchase and Sale Agreement for the sale of Motiva's
Delaware City Refinery to The Premcor Refining Group Inc. The
transaction is expected to close in the second quarter of 2004
after all regulatory and other approvals are obtained. The sale
will take place for consideration of approximately $800 million,
plus contingent payments totaling up to $125 million, and an
additional amount representing the value of refined product and
crude inventory at closing. Shell expects profit from other
currently announced U.S. portfolio actions and divestments in 2004
to approximately offset the expected loss related to this sale,
although quarterly phasing may differ. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990716/SHELL ) "The
completion of a Purchase and Sale Agreement with Premcor for the
Motiva Delaware City Refinery is another step in the journey
towards improving our performance in support of reaching our
financial and operational targets," said Lynn Elsenhans, CEO Shell
Oil Products US. The Delaware City Refinery, which began production
in 1957 as part of the Tidewater Oil Company's refining system, is
located 15 miles south of Wilmington and has the capacity to refine
in excess of 180,000 barrels of crude oil per day (100% Motiva
basis). The refinery employs approximately 650 people. An
additional 600 employees of contractors work at the facility.
Headquartered in Houston, TX, Motiva Enterprises LLC, is a refining
and marketing joint venture owned by affiliates of Shell and Saudi
Aramco. Motiva's marketing operations support a network of nearly
11,000 Shell- and Texaco-branded gasoline stations in the Eastern
and Southern United States. In addition to the Delaware City
Refinery, Motiva assets include three other refineries located in
Norco, LA; Convent, LA and Port Arthur, TX, capable of refining
approximately 705,000 barrels per day (bpd), and ownership or
partial interests in 47 product terminals. Shell Oil Products US, a
subsidiary of Shell Oil Company, is a leader in the refining,
transportation and marketing of fuels, lubricants, coolants,
services and solutions to consumer and business-to-business
customers in automotive, commercial and industrial sectors. Shell
Oil Company is an affiliate of the Royal Dutch/ShellGroup of
Companies (NYSE:RD/SC). For more information, please visit
http://www.shell.com/ .
http://www.newscom.com/cgi-bin/prnh/19990716/SHELL DATASOURCE:
Shell Oil Products US CONTACT: Karyn Leonardi-Cattolica of Shell
Oil Products US, +1-713-241-1578 Web site: http://www.shell.com/
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