Recently it was announced the United States Government has authorized the purchase of the controlling interest in a Texas oil refinery by Petroleos Mexicanos, commonly known as Pemex. Currently, Royal Dutch Shell holds a controlling interest in the Deer Park refinery.
According to reports, a letter from the Committee on Foreign Investment in The United States or CFIUS had concluded there were no unresolved national security concerns involving the sale. Although recently a Shell spokesperson stated that the sale was pending CFIUS approval.
The CEO of Pemex, Octavio Romero, stated at a news conference last May, that Pemex would pay off the existing debt of both Shell and Pemex in the refinery as part of the sale. Pemex will purchase Shell’s 50% interest in the company for approximately $596 million.
This purchase comes after Shell announced their goal of reaching net-zero emissions by 2050 and partial transitions into the clean energy market. Analysts report that Mexico’s goals are for Pemex to extract and refine its own energy. The Director of Mexico Studies at Rice University’s Baker Institute stated that “obviously they’re not focused on the business sense of the deal. They’re focused on energy sovereignty”.
The Deer Park refinery purchase will give Pemex the ability to process its heavy domestic crude and convert it into gasoline. Pemex’s existing refineries are not capable of refining heavy crude oil. The Deer Park refinery has a “coker” unit, which gives Pemex the equipment and capability to process 340,000 barrels of heavy crude a day.
If you or someone you know has suffered a petrol chemical-related injury or loss of a family member, contact an attorney at Abraham, Watkins, Nichols, Agosto, Aziz, & Stogner by calling 713-222-7211 or toll-free at 1-800-594-4884.