Royal Dutch Shell subsidiary Equilon Enterprises LLC d/b/a Shell Oil Products US has reached an agreement to sell the Martinez refinery in California to PBF Holding, a subsidiary of PBF Energy.
The sale has been agreed for a consideration of $1 billion (€0.88 billion) plus the value of hydrocarbon inventory, crude oil supply and product offtake agreements, in addition to other adjustments.
The divestment is part of Shell’s strategy to reshape refining efforts towards a smaller and smarter refining portfolio, according to the company.
“This deal is another step in our transformation to high-grade and optimise our portfolio to drive resilient returns,” said John Abbott, downstream director for Shell.
Subject to closing conditions and regulatory approvals, the transaction is expected to close by the end of the year.