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Shell weighs selling its 240,000-bpd refinery

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Shell’s spokesman Curtis Smith told Reuters that the oil giant is considering selling its 240,000-barrels-per-day refinery in Convent, Louisiana, as part of a broader strategy to reshape its refining portfolio, but the company has not announced yet.

According to reports, sources with knowledge of the Louisiana refinery operations told Reuters that Shell’s executive vice president of manufacturing, Robin Mooldijk, had told employees that Shell might put the refinery up for sale.

According to Oil Price, Shell became the sole owner and operator of the Convent refinery in 2017 when the supermajor and Saudi oil giant Aramco separated the assets of Motiva Enterprises.

Shell ended up owning the Norco and Convent refineries, while Saudi Aramco assumed full ownership of the Motiva Enterprises LLC entity and the largest U.S. refinery in terms of crude processing capacity, Port Arthur in Texas.

The energy giant is currently executing a new downstream strategy to reshape its refining business towards a smaller, smarter refining portfolio focused on further integration with Shell Trading hubs, Chemicals, and Marketing.

Earlier this year, the company sold the Martinez Refinery in California to PBF Holding Company for US$1.2 billion as part of this strategy.

At the time of the finalization of the transaction in February, Shell said:

“By 2025 we expect to have interests in a smaller, core set of refineries. A key advantage of these core sites will come from further integration with Shell trading hubs, and from producing more chemicals and other products resilient in a lower-carbon future, such as bitumen and base oils.”

Source Oil Price
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