Reuters
Published Nov 30, 2021 17:40
Updated Nov 30, 2021 21:45
By Erwin Seba
HOUSTON (Reuters) - A U.S. national security review has delayed the sale of Royal Dutch Shell (LON:RDSa)'s controlling interest in a Texas refinery to Mexico's national oil company, Petroleos Mexicanos (Pemex), Shell said on Tuesday.
Shell in May disclosed an agreement to sell its 50% interest in the 302,800-barrel-per-day (bpd) Deer Park, Texas, refinery outside Houston to partner Pemex for about $596 million. The closing was expected as early as Wednesday.
Approval by the Committee on Foreign Investment in the United States (CFIUS) is the last hurdle to the transfer of full control of the Texas refinery to Pemex, said people familiar with the matter.
"While we were hopeful we could conclude the sale of the Deer Park refinery earlier in the CFIUS review process, we're still targeting late 2021 as a closing date for the transfer of Shell's interest in the refinery," Shell spokesperson Curtis Smith said.
A spokesperson for CFIUS declined to comment.
One person close to Pemex said CFIUS approval could happen in mid-December.
A person who works at Deer Park said, however, there is no certain closing date. "Could be next week. Could be early next year," the person said.
U.S. Representative Brian Babin, a Republican representing southeast Texas, called on Tuesday for the U.S. government to block the sale, saying "Pemex lacks the technical expertise, safety record, and business practices needed to operate a facility of such scale in the United States."
"Allowing a foreign company run by an administration that is hostile toward American energy producers access to our critical infrastructure endangers my constituents and threatens our national security," Babin said in a statement.
Babin has openly criticized the sale since June, when he requested a review by the U.S. Treasury and Energy departments.
Under the sale agreement announced in May, Shell would retain control of the Deer Park facility's chemical plant and the company will have only one refinery in the United States, the 230,611-bpd plant in Norco, Louisiana.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.