Chevron’s subsidiary Chevron U.S.A. (CUSA) has agreed to acquire the Pasadena Refining System from Petrobras America, a subsidiary of Brazilian national oil company Petrobras, for $350m.
The Texas-based Pasadena Refining System is an independent refiner and marketer of petroleum products. The refining company has a crude oil capacity of more than 110,000 barrels per day.
The deal includes the Pasadena refinery and PRSI Trading and excludes the working capital of the refining company. The 466 acre refining complex, located in Pasadena, is made up of a 323 acre refinery, which includes a tank farm with a storage capacity of 5.1 million barrels of crude oil and refined products along with 143 acres of additional land.
Also included in the transaction are the refining company’s direct pipeline connections, connections to major product pipelines and waterborne access to receive and ship crude oil and refined products.
The Pasadena refinery became a fully-owned subsidiary of Astra in 2005 after Pasadena Refining System acquired Crown’s refinery. A year later, Astra offloaded 50% stake in the refining company to Petrobras America, which took over full ownership in late 2008.
Post acquisition, Pasadena Refining System will be joining the refining network of CUSA, which includes a refinery built in Pascagoula, Mississippi, two facilities in El Segundo and Richmond in California, and the Salt Lake refinery in Utah.
Chevron Downstream & Chemicals executive vice president Pierre Breber 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.”
The closing of the transaction will be subject to regulatory approvals and other customary closing conditions.
Last month, Chevron said that it will spend $20bn in its operations across the world. In the upstream operations, the company will allocate an amount of $17.3bn while it will spend $2.5bn on its downstream activities this year.
In the US, the oil and gas major will spend $1.5bn in its downstream operations and $1bn in its international downstream business.
Chevron’s downstream businesses are engaged in refining, marketing and transportation of fuels, and manufacturing and distribution of lubricants, additives and petrochemicals.