(Alliance News) - Royal Dutch Shell PLC has agreed the USD1 billion sale of a Californian refinery, it said late Tuesday, and has also given the thumbs up to a Brazilian project.
Shell is disposing of the Martinez refinery, in central California near San Francisco, to PBF Energy Inc. This sale, the oil major said, is part of a move towards a "smaller, smarter" refining portfolio.
Downstream Director John Abbott said the deal will "optimise" Shell's portfolio "to drive resilient returns".
The Martinez refinery has a capacity of 157,000 barrels per day, producing gasoline, diesel, and jet fuel, amongst other products.
In a separate announcement late Tuesday, Shell said its Libra consortium has decided to go ahead with the Mero-2 floating production, storage, & offloading vessel at the Mero field, on Brazil's offshore Santos basin.
The Libra consortium is led to Petrobras, with a 40% stake, alongside Shell and Total SA with 20% each, as well as two Chinese partners.
The vessel will be able to process 180,000 barrels of oil a day, and is the second of four new production systems to be set up at the Mero field, where first oil is expected in 2022.
"Shell is the largest foreign producer in Brazil, which has become a heartland for us. Mero-2 is the latest in a series of FPSOs that will come online," said Andy Brown, director of Upstream at Shell.
"From production to development, appraisal and exploration, we have a full funnel of long-life, resilient growth opportunities in the country, which is home to some of the best deep-water basins in the world."
Shell 'A' shares were 0.3% lower on Wednesday at 2,535.50 pence each, with 'B' shares down 0.2% at 2,543.00p.
