January 30, 2019 / 10:43 PM / 2 months ago

Chevron to buy Pasadena refinery from Petrobras for $350 mln

FILE PHOTO - The logo of Dow Jones Industrial Average stock market index listed company Chevron (CVX) is seen in Los Angeles, California, United States, April 12, 2016. REUTERS/Lucy Nicholson/File Photo

HOUSTON (Reuters) - Chevron Corp said on Wednesday it would pay $350 million to buy a refinery in Pasadena, Texas, from Brazilian state oil company Petrobras, confirming a Reuters report from Monday.

In addition to the 110,000-barrel-per-day (bpd) refinery, Chevron will take ownership of a 466-acre (188.5 hectares)complex on the Houston Ship Channel that includes storage tanks with capacity for 5.1 million barrels of crude oil and refined products, as well as 143 acres of additional land, the company said.

“This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula,” said Pierre Breber, executive vice president of Chevron downstream & chemicals.

Chevron, which reported a 150,000-bpd increase in shale production in the third quarter, has said it wants a second Gulf Coast facility to handle that crude and better supply its retail gasoline network. The Pasadena refinery produces mostly gasoline and distillates such as diesel.

The deal includes all of Petrobras subsidiary Pasadena Refining System Inc, which operates the refinery and tank farm and owns the adjoining property, and PRSI Trading LLC.

Once approved by regulators, the acquisition will become the second Gulf Coast refinery operated by Chevron and its only one in Texas.

Chevron, which reported a 150,000-bpd increase in shale production in the third quarter, has said it wants a second Gulf Coast facility to handle that crude and better supply its retail gasoline network. The plant produces mostly gasoline and distillates such as diesel.

Reporting by Erwin Seba; Additional reporting by; Shanti S Nair in Bengaluru; Editing by Sachin Ravikumar and Sandra Maler

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