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Update Valero Sale Aruba Stalls – looking elsewhere?

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 14 years, 2 months ago.

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  • #3443

    Charles Randall

    <Seems to have been really bad week for Valero – Wilmington & Corpus S/D Fires & stalled sales -CR>
    Sale of plant in Aruba stalls
    Valero Energy Corp. said it will seek other buyers for its Aruba refinery in the Caribbean as the sale of the plant has stalled, a company official told analysts Thursday.

    The sale of the 275,000-barrel-a-day refinery in Aruba “is not dead, but it is at a lull,” said Gene Edwards, executive vice president for business development, adding the San Antonio-based company will start talking with other potential buyers.
    Valero also has said that it’s looking to sell its plants in Memphis, Tenn., and in Ardmore, Okla. Interest in those plants has come from smaller companies. But because of an uncertain economy and a credit crunch, a sale of the two refineries “probably isn’t going to go forward at this time,” Edwards said.
    Valero had said it would spend about $4.5 billion on capital expenditures this year, but now plans to spend $3.7 billion to $3.8 billion.

  • #6580

    Charles Randall

    Petrobras: Talks to acquire Aruba, Pasadena refineries on hold – Brazil, Caribbean
    Published: Tuesday, September 16, 2008

    By Fbio Palmigiani, Business News Americas
    Brazil’s federal energy company Petrobras has suspended talks to acquire Texas-based Valero Energy’s (NYSE: VLO) Aruba refinery and an increased stake in Pasadena Refining.

    “We are not evaluating the Aruba refinery for the moment,” Petrobras downstream director Paulo Roberto Costa told journalists on the sidelines of the Rio Oil and Gas conference. Petrobras previously said it was interested in the refinery, which Valero aims to offload this year.

    The refinery has throughput capacity of 275,000b/d. The unit processes lower-cost heavy sour crude oil and can market products in the US Gulf Coast, Florida, the New York harbor and the Caribbean. And the proposed acquisition of Transcor Astra Group’s 50% stake in Pasadena Refining (PRSI), the US company operating the Pasadena refinery in Texas, is on hold, according to Costa.

    Petrobras was due to make investments in the refinery but allegedly failed to do so, creating a legal conflict. “We understand Petrobras is suing Astra and not the other way around. We felt very uncomfortable with the situation and decided to sue Astra in the US,” Costa said.

    Astra, Belgium group NPM/CNP’s oil trading and refining subsidiary, has said it would sell its stake to Petrobras. “Transcor Astra Group has… exercised its right to put these assets to Petrobras,” NPM/CNP said in a statement earlier this year. “The sale price is subject to valuation by independent appraisers.”

    Pasadena has 100,000b/d of installed capacity.

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