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Update Refinery sales: US Valero Delaware & Paulsboro & EU Chevron Pembroke joins Total Dunkirk & Sh

Home Forums Refining Community Refinery News Update Refinery sales: US Valero Delaware & Paulsboro & EU Chevron Pembroke joins Total Dunkirk & Sh

This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 12 years, 10 months ago.

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  • #2741

    basil parmesan

    <font size=3>Valero expects to close sale of Delaware City refinery</font>

    <b>By JEFF MONTGOMERY . The News Journal . March 10, 2010 </b>

    <b><span style=”color:#0000ff”>A group led by European refiner Petroplus will likely sign a deal to buy the Delaware City Refinery some time this month, a top Valero official said Tuesday, raising hopes for a reopening of the 210,000 barrel per day complex.</span></b>
    Bill Day, a Valero spokesman in San Antonio, confirmed that company Chief Executive Officer Bill Klesse “made the statement that we expect the agreement to be signed some time this month” during comments to reporters at an industry conference in Houston.
    “We have said that we’re in advanced negotiations with PBF. This is the result of those negotiations,” Day said, adding that sale would cover “assets and property at the refinery.”
    <b><span style=”color:#0000ff”>PBF Investments is a joint venture formed in 2008 by Petroplus and two private equity companies, Blackstone Group and First Reserve. The company is led by Thomas D. O’Malley, a refining industry giant who bought the Delaware City refinery in 2004 as part of the Premcor group and then sold it to Valero at a profit just over a year later.</span></b>
    <b>Gov. Jack Markell’s</b> administration had been leading efforts to find a buyer and convince Valero to sell the refinery, hoping to recover the 550 full-time jobs and hundreds of contractor positions lost to the shutdown.
    “He has been working to make that a reality and is hopeful that those efforts, which began as very long odds, might be showing some promise,” said Brian Selander, Markell’s chief spokesman.
    But neither Valero nor Petroplus has revealed any details about plans for the refinery.
    <b><span style=”color:#0000ff”>Petroplus is Europe’s largest independent refiner and petroleum wholesaler, operating six refineries including sites in the United Kingdom, Belgium, France, Germany and Switzerland.</span></b>
    <b>Department of Natural Resources and Environmental Control</b> officials have confirmed talks with refinery officials in recent weeks about a restart of the plant, which began a full shutdown in November. DNREC Secretary Collin P. O’Mara declined to elaborate on the talks, but said that the state wants to see the plant operate more cleanly in the future.
    <b><span style=”color:#ff0000″>Valero said the shutdown was due to operating problems and losses that averaged $1 million per day last year. </span></b><b><span style=”color:#ff0000″>The company also is considering sale of its Paulsboro, N.J., refinery to PBF, Day said.</span></b>
    <b>Contact Jeff Montgomery at 678-4277 or</b>

    <font size=3>Chevron looking to sell Welsh refinery</font>
    <span style=”color:#0000ff”><font size=2>A for-sale sign has been hoisted over yet another British oil refinery, after Chevron, the US supermajor, said it wanted to dispose of its Pembroke plant.  </font></span><br>

    <b>By Rowena Mason
    Published: 5:30AM GMT 10 Mar 2010</b><br><br><b><span style=”color:#0000ff”>The company said it was looking to “solicit bids” for the Welsh site that employs 1,400 people. </span></b>
    <b><span style=”color:#ff0000″>It is understood that Essar, the Indian group in talks with Shell about buying its Stanlow plant</span></b>, is not interested in the potential acquisition, although it is actively looking to expand its European portfolio.
    <b><span style=”color:#0000ff”>Chevron ruled out shutting down or mothballing the industrial site like its French rival Total, which this week said its Dunkirk refinery would be converted into a gas plant after it lay idle for many months. </span></b>
    <b><span style=”color:#ff0000″>But the plans are part of wider re-evaluation of its business and restructuring that will involve 2,000 redundancies worldwide, with most cuts across the US, Africa and Asia. </span></b>
    Ieuan Wyn Jones, the Welsh Deputy First Minister, said he had spoken to Chevron yesterday morning.
    <b><span style=”color:#0000ff”>”They have already told us that no decision has been taken to sell their Pembroke site, but are undertaking an exercise to identify possible buyers.</span></b> As Chevron’s only refinery in Europe, this site is of huge significance in terms of refining capacity and economic value to the area, Wales and the UK.”
    Jeff Beck, regional organiser of the GMB union, said: “The future of this refinery is absolutely crucial for employment in west Wales.”
    Oil majors have been shedding their refineries across the globe after reporting losses in their downstream units on weak margins from the plants, which convert crude into petroleum products.
    <b><span style=”color:#ff0000″>Analysts said that Asian companies are most likely to survive the excess capacity in the refining industry because their costs are lower.</span></b> Chevron’s Pembroke refinery first opened in 1964 and provides petrol to the oil company’s 1,100 Texaco stations across the UK. <br><br><br>

  • #5726

    Charles Randall

    Here is update on US Refinery Valero Delaware Fluid Coking Refinery & mentions Valero’s Paulsboro Coking refinery sales status. Also includes recent update on Europe Refinery sales at Chevron Pembroke, Total Dunkirk & Shell’s Stanlow refineries – none of them are coking refineries however. Chevron claims to be looking at 2,000 redundancies World Wide but mostly in US, Africa & Asia.
    I disagree one article comments that Asian Refineries will likely escape this round of cuts in Refining Industry capacity rationalization because their cost are lower. Asia and especially China has recently overbuilt on refining capacity with a large amount of capacity that is destined for gasoline & diesel exports to US & Europe. I think it will likely be a delayed action because the Chinese government owns and subsidizes most of its capacity and unlike the US will provide some support. The coming major increase in Mid East Refining capacity will be taking market share from the China refineries because they are also government subsidized with integrated crude from the countries supplying import crude into China (several are even JV partners on new world class export refineries). 
    Looking at US demand picture it is unlikely capacity there will ever return to pre-recession levels and especially so with mandated increasing substitution of Ethanol displacing Gasoline production. Since US is one of few Gasoline based Fuel regions in the world all of the remaining countries like China, India, Africa & Russia will have to readjust to domestic diesel production levels on crude (which is one reasons previous capacities were limited to 50-75% of their capacities) …….. having governments involved in subsidizing losses & offsetting freight fuel cost is going to make this round of rationalization especially brutal.
    The only bright spot I can see is all the mutual fund traders and companies like Citigroup that have been speculation both crude & gasoline prices way above fundamental values (which is also part reason US margins are so bad) are likely take a bath if they float 22 supertankers like they did end 2008/start 2009 betting current price & demurrage cost will be below future crude & product values in peak consumption periods. Most of them barely broke even – this time maybe it will be blood bath, unfortunately they are going to take out all small, low complexity, independent refineries with them.

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