Mexico: Pemex receives authorization for Deer Park's refinery acquisition
The Committee on Foreign Investment in the United States approved the petition of the Mexican company to own the majority of Shell’s interest in the installation.
The Committee on Foreign Investment in the United States (CFIUS) has authorized acquisition of Deer Park’s refinery by Pemex. The news was confirmed last week by Octavio Romero Oropeza, CEO of the company, in a press conference that was held with the presence of Mexico’s president, Andrés Manuel López Obrador. The CFIUS did not identify any threat to competition or national security in the purchase of the majority of Shell Oil Company’s interest in the installation.
“With this refinery, the new Dos Bocas refinery, the Tula coker and the rehabilitation of the six existing refineries, we are increasing our refining capacity and processing all of our raw materials, which will mean producing all of our fuels in Mexico,” stated Obrador.
After the approval of the transaction, Pemex will own 50.005% of Shell’s equity stake in the site located in the city of Houston, Texas. Oropeza stated that the terms of the operations have not been changed regarding last May’s announcement. The negotiation will be formally closed by January of next year and will consist of a total of $596 millions that corresponds to the 50% of the company’s interest.
According to Pemex’s information, Deer Park has the capacity to process 340.000 barrels of crude oil daily, from which approximately 131.000 barrels of gasoline and components, 89.000 barrels of diesel, 21.000 barrels of turbosine and 61.000 barrels of other products are produced daily. He also stated that the refinery has a history of low percentage of unscheduled downtime while emphasizing on the technical and administrative efficiency of operations.
