Chevron Corp. completed a $350 million purchase of a refinery in the Houston suburb of Pasadena, Texas, from Brazil's national oil company, Petrobras, Chevron said in a statement on May 1.
The sale was agreed to in January, but Chevron put the transfer of the 112,229-barrel-per-day (bbl/d) plant's ownership on hold on April 2, telling Petrobras it had to prove the refinery would operate as promised, sources told Reuters.
The Pasadena refinery is the second on the U.S. Gulf Coast for Chevron, which is based in San Ramon, California.
Chevron wanted the refinery to process sweet crude coming from its oil fields in the Permian Basin of Texas.
"This acquisition builds on the strength of our existing Gulf Coast business, enabling us to supply more of our retail market in the region with Chevron-produced products, and positions us for connectivity to our strong upstream assets in the Permian Basin," said Mark Nelson, Chevron’s executive vice president for downstream and chemicals.
In addition to the refinery, Chevron acquired PRSI, a Petrobras subsidiary that operates the refinery and owns subsidiary PRSI Trading, which trades in crude and refined products markets. PRSI owns a 5.1-million-barrel storage tank farm and an additional 143 acres (58 hectares) of land along the Houston Ship Channel.
Chevron also operates a 352,000-bbl/d refinery in Pascagoula, Mississippi.
The Pasadena refinery was at the center of several investigations in Brazil of corruption within Petrobras.
The Brazilian oil company paid $360 million for half of the Pasadena refinery in 2006, more than eight times what its previous owner, Astra Oil, a unit of Belgian-controlled Astra Transcor Energy, paid for the complex a year earlier.
By 2012, Petrobras had sunk $1.18 billion into it, including the cost of buying out Astra’s remaining half after a legal dispute with Astra.
Recommended Reading
Elk Range Royalties Makes Entry in Appalachia with Three-state Deal
2024-03-28 - NGP-backed Elk Range Royalties signed its first deal for mineral and royalty interests in Appalachia, including locations in Pennsylvania, Ohio and West Virginia.
Marketed: Paloma Natural Gas Eagle Ford Shale Opportunity in Frio County, Texas
2024-02-16 - Paloma Natural Gas has retained EnergyNet for the sale of a Eagle Ford/ Buda opportunity in Frio County, Texas.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Evolution Petroleum Acquires SCOOP/STACK Interests
2024-01-09 - Evolution Petroleum entered agreements with three companies to purchase non-op interests in Oklahoma’s SCOOP and STACK plays for $43.5 million, equaling its largest transaction so far.
Analysts: APA Takes Callon Off Board as Permian M&A Wave Hits ‘24
2024-01-04 - APA and its subsidiary Apache Corp. are plucking Callon Petroleum off the board for $4.5 billion in stock as a historic wave of Permian consolidation enters a new year.