Shell Welcomes Potential Buyers for Bakersfield Refinery - Reiterates Reasons for Announced Closure of Facility HOUSTON, April 6 /PRNewswire/ -- Shell Oil Products US today said it welcomes discussions with potential buyers of the Bakersfield Refinery but reiterated its reasons for the planned closing of the refinery in October. Shell announced in November of 2003 that it would be closing the facility in October of 2004. (Logo: http://www.newscom.com/cgi-bin/prnh/19990716/SHELL ) "Since so many people have questioned if the refinery is for sale, I want to make it clear that it is, and to state unequivocally that we are willing to sit down with any credible buyers to discuss such a deal," said Lynn Elsenhans, President and CEO of Shell Oil Products US. "We still believe, however, that once potential buyers take a close look at the facility and its available crude supply, that they will reach the same conclusion that we have. That this refinery is not economically viable going forward for a number of reasons, including the cost and availability of the crude needed to run the facility." Elsenhans stated that the facts on which Shell based its decision to close the refinery have not changed. "This is a land-locked refinery, which because of a decline in its crude source -- San Joaquin Valley heavy crude from the Kern River Field -- makes its continued operation no longer economically viable." Shell also restated its commitment to supply its branded customers with gasoline and diesel. "We understood that there would be many questions and we wanted to have the time needed to properly answer and respond to those questions. That is why we announced the closure 11 months ahead of time," said Elsenhans. Elsenhans alsocommented on recent press and other reports questioning Shell's motives and reasons for closing the refinery. "Today, certain internal documents regarding the operation of the Bakersfield Refinery have been made public by a California special interestgroup. We are disappointed that these documents were publicly released, but note that they do show that the Bakersfield Refinery lost money in 2001 and 2002, and that the profit that we project for the refinery in 2004 does not justify maintaining ourinvestment in the facility," said Elsenhans. "Furthermore, the declining utilization rates illustrate that it will not be economically viable to operate the facility going forward." Additional information regarding the closure of the facility can be found at http://www.shellbakersfieldrefinery.com/ . Shell Oil Products US, a subsidiary of Shell Oil Company, is a leader in the refining, transportation and marketing of fuels, and has a network of nearly 7,500 branded gasoline stations in the WesternUnited States. Shell Oil Company is an affiliate of the Royal Dutch/Shell Group 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: Cameron Smyth of Shell Oil Products US, +1-661-253-0737 Web site: http://www.shell.com/ http://www.shellbakersfieldrefinery.com/

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