* Formal handover completed and new directors installed
* Mexico to receive up to 230,000 bpd of gasoline, fuels
(Adds statements by Shell, Pemex confirming agreement)
By Adriana Barrera and Ana Isabel Martinez
MEXICO CITY/HOUSTON, Jan 20 (Reuters) - Mexican state oil
company Petroleos Mexicanos on Thursday signed a
long-term crude supply contract with Royal Dutch Shell Plc
as part of its acquisition of the Deer Park refinery in
Texas.
Pemex and Shell in May announced the transaction, which is
worth almost $600 million and will make the Mexican firm the
sole owner of the refinery near Houston. The facility has a
capacity to process 340,000 barrels per day (bpd).
Shell will supply about 200,000 bpd of foreign and U.S.
crude to the plant for at least 15 years, according to a source
and a July document seen by Reuters. A Pemex unit expects to
supply up to 115,000 bpd of Mexican crude to the refinery and
receive about 230,000 bpd of refined products that could go to
Mexico.
Pemex separately agreed to supply the adjacent Shell
Chemical plant with feedstocks. It also made two-year job offers
to the plant's salaried workforce, two sources said.
Pemex Chief Executive Officer Octavio Romero in a statement
pledged to operate the plant safely and to protect its staff and
the environment. The refinery's new board of directors held
their first meeting on Thursday, he said.
Shell confirmed it had reached crude supply and product
agreements and said employees were offered Pemex employment. It
did not comment on other terms of the agreements.
If Pemex suspends or reduces the volumes that are part of
its supply contract, it would have to pay Shell between $50
million and $190 million depending on the year it does so,
according to the July document.
The purchase aids Mexico's drive to become more
self-sufficient in gasoline and diesel, CEO Romero said.
Pemex's fuel production declined by almost half between 2016
and 2020 and its refineries ran at less than 50% of their
capacity that year. In contrast, Deer Park ran at 78% of
capacity in 2020.
Mexico carried out the transaction as agreed: $596 million
for the refinery's assets - equivalent to Shell's 50% stake in
the joint venture's debt - as well as the liquidation of the
$596 million that made up Pemex's stake in the refinery.
(Reporting by Adriana Barrera and Ana Isabel Martinez in Mexico
City; Additional reporting by Gary McWilliams and Marianna
Parraga in Houston
Editing by Daniel Wallis and Matthew Lewis)
