Chevron to buy Texas refinery from Brazil's Petrobras
HOUSTON (Reuters) - Chevron Corp has agreed to buy a Texas oil refinery with a troubled past and space to handle a coming flow of shale from its West Texas operations, two sources familiar with negotiations said.
The U.S. oil major is expected to disclose the deal to acquire a 112,000 barrel-per-day (
Chevron spokesman Braden Reddall declined to comment on Monday. Carlos Monteiro, a spokesman for Petrobras in Rio de Janeiro, said any communications on an agreement would be disclosed to the market
Chevron and Petrobras’ negotiations were delayed in part by Brazil’s presidential election and pipeline operator Kinder Morgan Inc dropping out of talks to operate a terminal at the site as a joint venture, the sources said.
Kinder Morgan spokeswoman Lexey Long declined to comment
The rapid expansion of U.S. shale production from the Permian Basin of West Texas and New Mexico has stirred demand for new U.S. refining capacity and crude-export facilities. Oil output has soared to an estimated 3.8 million
Chevron, which reported a 150,000
The refinery covers 192 acres on the Houston Ship Channel and the purchase includes another 274 acres of
The plant’s 300-strong workforce is represented by the United Steelworkers
There are several small U.S. refineries on the market. Husky Energy Inc earlier this month began marketing a 12,000-
Royal Dutch Shell recently began accepting bids for its 75,000-
In November, CVR Energy Inc said it may buy out the public holders of its refining unit, CVR Refining GP, which operates refineries in Kansas and Oklahoma. That decision would unwind a partnership making a future sale easier.
Reporting by Erwin Seba and Jessica Resnick-Ault; writing by Gary McWilliams; editing by Bill Rigby
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