- The operation represents a strategic action by the Mexican Government to achieve energy sovereignty in the country
- We will work to attract, maintain, and develop our personnel, our most valuable asset
- The refinery's commitments to neighboring communities will continue
Petróleos Mexicanos (PEMEX) Chief Executive Officer Octavio Romero Oropeza, accompanied by PEMEX and Shell Oil Company management, reported that the full purchase of Deer Park's Houston, Texas refinery was successfully completed by acquiring 50.005% of Shell's share. With this the Mexican state will have full ownership of this facility which will be, from this day forward, under PEMEX's control.
At the conclusion of the operation and in the presence of Mr. Romero Oropeza, the first session of the Deer Park Board of Directors was held, which was comprised of the following Pemex officers: Ulises Hernandez Romano, General Manager of PMI International Business; Victor M. Navarro Cervantes, Corporate Director of Planning and Performance; Marcos M. Herreria Alamina, Corporate Director of Administration and Services; Jorge L. Basaldua Ramos, head of Pemex Industrial Transformation; and Manuel Flores Camacho, general manager of PMI North America. The above guarantees that the strategic decisions for this important project are made by the Mexican government.
As planned, the acquisition was completed after it was reported on December 22 that the Committee on Foreign Investment in the United States (CFIUS) authorized the buying and selling because it has not identified any risks in terms of competition or national security for The United States of America.
The financial transaction was completed under the agreed terms announced last May. The value of the transaction for the refinery's assets is $596 million, equal to 50 percent of Shell's share of the company's debt. In addition, the remaining debt of $596 million corresponding to 50 percent of PEMEX's participation was settled; the resources for the transaction were covered by the National Infrastructure Fund (Fonadin).
Romero Oropeza thanked the President of Mexico for his great support in strengthening PEMEX and said that the purchase of the refinery represents a strategic action by our government to achieve Mexico’s energy sovereignty and achieve the goal of guaranteeing the domestic fuel supply. For this, he said, the rehabilitation of the six refineries that make up the National Refining System is also being conducted, the construction of the new one in Dos Bocas, Tabasco, and the habilitation of the coke plant of Tula, Hidalgo.
The head of PEMEX reiterated that technical and administrative efficiency will be maintained, and work will be done to make the refinery work properly. It will also comply with protocols for the safety of persons, facilities, and their surroundings with regard to environmental and social matters.
In a message to the workers, Octavio Romero welcomed PEMEX Deer Park and assured that it will support the continuity for the security and reliability projects. He stated that this new stage will be one of learning and discovery for all, particularly to attract, maintain, and develop staff, our most valuable asset.
Finally, he expressed interest in complying with the refinery's commitments to neighboring communities.
- Background. First participation. In 1993, PEMEX acquired 49.995% of the shares of Deer Park Refinery in Houston, Texas. It started its partnership with Shell Oil Company.
- Negotiations for total acquisition. President Andrés Manuel Lopez Obrador reported that negotiations to acquire Deer Park began in mid-2020, when the crisis began due to the pandemic that affected the oil sector, proposing to Shell its interest in acquiring its shares, over and above other proposals.
- Announcement of the purchase of shares. The president of Mexico announced, on May 24, 2021, the agreement to buy Shell's Deer Park shares. PEMEX said an agreement was signed for the full purchase of the refinery.
- Characteristics of the financial operation. The value of the transaction for the refinery's assets is $596 million, equal to 50 percent of its debt (Shell's share in the company). In addition, the existing debt of $596 million corresponding to 50 percent of PEMEX's participation was settled; the resources for the transaction were covered by the National Infrastructure Fund (Fonadin), so no public debt was contracted.
- Production capacity. Deer Park has a crude processing capacity of 340 thousand barrels per day. It can process heavy and light crude without generating fuel oil. It produces about 110 thousand barrels per day (bpd) of gasoline, 90 thousand bpd of diesel, and 25 thousand bpd of jet fuel, in addition to other products. It is characterized by its good performance and use above 80%.
- Benefits for Mexico. The fuels that Mexico requires to achieve energy self-sufficiency will be produced with this refinery, together with those that make up the national refining system.