US Security Review Stalls Sale of Shell Texas Refinery to Mexico’s Pemex

US Security Review Stalls Sale of Shell Texas Refinery to Mexico’s Pemex

US Security Review Stalls Sale of Shell Texas Refinery to Mexico’s Pemex: The Royal Dutch Shell is in a bind as it tries to sell a 50% stake in its Deer Park, Texas refinery to Pemex. The deal is expected to close on Wednesday, and Shell will retain control of its chemical plant.

Despite the setbacks, the deal could still proceed. The two companies are in negotiations over a potential merger that would make the Texas refinery more profitable, and Pemex and the company are attempting to reach a settlement before the merger is finalized.

Stalls Sale of Shell Texas Refinery to Mexico’s Pemex

The Shell Texas refinery deal has been delayed for a number of reasons. First, Pemex has little experience dealing with American labor unions.

And with an existing plant in Louisiana, Shell would have only one U.S. refinery. That raises questions about the wisdom of paying $9 billion for a new one in the United States. It also makes Pemex’s state government look bad, as it is saddled with a massive debt and outdated technology.

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Secondly, the US national security review has delayed the sale of the Deer Park refinery to Pemex. Moreover, if the sale is completed, Shell will maintain control over the chemical plant at Deer Park.

It will keep its existing 230,611 barrel per day refinery in Norco, Louisiana. Nonetheless, it is unclear if the deal will be finalized, as the US Treasury and Energy Department will need to approve the transaction.

U.S. Representative Brian Babin, a Republican representing southeast Texas, referred to as on Tuesday for the U.S. Government to dam the sale, pronouncing “Pemex lacks the technical know-how, protection document, and enterprise practices had to function a facility of such scale within the United States.”

“Allowing a overseas corporation run by way of an management that is opposed toward American electricity manufacturers get right of entry to to our crucial infrastructure endangers my elements and threatens our country wide safety,” Babin said in a assertion.

Babin has brazenly criticized the sale considering June, when he requested a evaluation by using the U.S. Treasury and Energy departments.

Under the sale agreement announced in May, Shell would keep manage of the Deer Park facility’s chemical plant and the business enterprise will have simplest one refinery in the United States, the 230,611-bpd plant in Norco, Louisiana.

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Stalls Sale of Shell Texas Refinery to Mexico’s Pemex

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