Subsidiaries of Royal Dutch Shell plc (NYSE: RDS.A) have reached an agreement for the sale of the Mobile Chemical LP Refinery in Alabama to Vertex Energy Operating LLC.
The deal covers the sale of the refinery and associated co-located logistics infrastructure, including product racks, an associated dock, and the Blakeley Island Terminal. The consideration for the transaction is $75 million in cash, plus the value of the hydrocarbon inventory, which currently ranges from $65 million to $85 million, assuming current market prices and historic inventory volumes under normal operating conditions, Shell outlined. The hydrocarbon inventory will be valued at closing based on actual volumes and prevailing market prices.
The transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals. All employees providing dedicated support to the Mobile Refinery will be offered employment with Vertex Energy, Shell revealed. Shell noted that the divestment is part of its strategy to reduce its global refinery footprint to core sites integrated with the company’s trading hubs, chemicals plants, and marketing businesses.
“The sale of the Mobile refinery shows that we are making good progress delivering on our manufacturing strategy,” Robin Mooldijk, Shell’s executive vice president for manufacturing, said in a company statement. “We’re becoming better positioned to deliver resilient returns and meet the increasingly diverse needs of our customers,” the Shell representative added in the statement.
Vertex Energy is a U.S. owned, Texas-based specialty refiner of alternative feedstocks and a marketer of high purity petroleum products. The Mobile refinery, which is 100 percent Shell owned, is located near the U.S. Gulf Coast, at the north end of Mobile Bay in Alabama. The refinery is designed to process approximately 90,000 barrels per day of crude oil and products that include LPG, diesel fuel, jet fuel, and gasoline.
Earlier this week, Shell revealed that it had reached an agreement for the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos).
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