Two deals for UK refineries near completion

Sources claim that Valero Energy Corp. is in discussions with Chevron Corp. with a view to buy the latter’s refinery in Pembroke. The 210 000 bpd refinery has been on the market since last year as Chevron aims to lower its exposure to refining, instead prioritising exploration and reduction of debt. The prospective deal, worth between US$ 1 billion and US$ 1.5 billion, is expected to be concluded within the next month, although it has been reported that talks could still break down.

Elsewhere, the India based Essar Group has make an offer to purchase Royal Dutch Shell Plc’s Stanlow refinery for US$ 350 million after more than a year of talks. Essar will also pay an additional US$ 780 million for Stanlow’s crude and oil product inventory. The deal will aid the Essar Group in achieving its processing capacity target of 1 million bpd. The company is expanding its Indian plant, as well as buying refineries in Europe and Africa.

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