Shell to sell Deer Park Refinery interest to Mexico's Pemex

London (Quantum Commodity Intelligence) - Energy major Shell is to sell its 50% interest in Deer Park Refining in a $596 million deal with Mexican state-owned oil company Pemex, leaving the latter with full ownership of the company, Shell announced late Monday.

Shell still has several refineries up for sale and said in a strategy update earlier this year that it wants to cut its number of refineries from 13 to 6 high-value chemical and energy parks.

The Deer Park refinery, situated close to Houston, Texas and with a capacity of around 340,000 barrels/day, was previously viewed as one of the energy parks the company wished to keep, however.

The agreement, with Pemex subsidiary P.M.I. Norteamerica, followed an unsolicited approach by PMI and is set to close in Q4 this year, subject to regulatory approvals.

"Shell did not plan to market its interest in the Deer Park refinery; however, following an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them," said Huibert Vigeveno, Shell's Downstream Director.

Shell also said in its strategy that it wants to increase volumes in its chemicals portfolio and the Deer Park deal will leave the complex's petrochemical facilities in the company's hands.

"Shell will retain a meaningful presence in Texas through its chemicals facility in Deer Park and its activities in the Permian Basin, and in Louisiana through its integrated refining and chemicals site at Norco [and] its chemicals facility at Geismar," said the company in the statement.