On January 20 Pemex will assume control of Deer Park

MEXICO CITY.- Next Thursday, January 20, Petroleos Mexicanos (Pemex) will formally assume control of the Deer Park refinery, the agency announced on Thursday. Reuters.

As of that date, the refinery located in the city of Texas will be operated directly by Pemex, after reaching an agreement with the Anglo-Dutch company Royal Dutch Shell, the agency reported based on sources familiar with the matter.

In May of last year, President Andres Manuel Lopez Obrador surprisingly announced that Pemex, which carries heavy liabilities and recurring losses, agreed to buy Shell its 50% stake in the refinery for nearly $600 million, after an unsolicited offer.

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The Mexican oil company reached a labor agreement with the staff that was already operating the refinery, which has a capacity to process 340,000 barrels per day (bpd), according to the agency.

“The operators will be the same, but it will no longer be Shell personnel (…) This guarantees the stability of the operation”, they expressed.

Another company source said that a Pemex committee, including its CEO, Octavio Romero, will go to Texas for the final signing next Thursday.

Pemex did not immediately respond to a request for comment. Shell’s spokesman could not immediately confirm the delivery date.

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Another source close to the talks said there are still final transition activities pending, expected to be completed in the coming days. He added that conversions have been accelerated in recent days in order to complete the entire purchase operation before February 1.

Neither Shell nor Pemex have revealed details regarding what volumes of refined products Mexico will receive from the plant in Texas, nor how much crude oil it will be able to supply in the future..

López Obrador has said that with control of Deer Park and the Olmeca refinery, better known as Dos Bocas, Mexico will be able to achieve energy self-sufficiency. because it will stop importing fuels and exporting crude oil by 2024, without explaining how the country will offset those revenues from foreign sales.

The six Pemex refineries in Mexico are processing around 700 thousand bpd on average, well below their combined capacity of 1.5 million bpd.

With information from Reuters

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