Page 4 - LatAmOil Week 48 2021

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

(Photo: Shell)
CFIUS delays Shell’s sale of

refinery in Texas to Pemex

The Deer Park plant is not likely to be transferred to Mexican NOC by year-end as anticipated

SHELL Oil Co., a US-based subsidiary of Royal up the deal by the end of December.
Dutch Shell, said earlier this year that it was “While we were hopeful we could conclude
WHAT: hoping to finalise the planned sale of its 50.01% the sale of the Deer Park refinery earlier in the
CFIUS did not approve stake in the 302,800 barrel per day (bpd) Deer CFIUS review process, we’re still targeting late
the Deer Park refinery Park refinery in Texas to a subsidiary of Mexico’s 2021 as a closing date for the transfer of Shell’s
sale as expected on national oil company (NOC) Pemex in Decem- interest in the refinery,” Smith commented.
November 29. ber of this year. However, the deal appears to According to one source with close ties to
have encountered some last-minute obstacles. Pemex, this optimism is well-founded. CFIUS
WHY: On November 30, Shell said in a statement may approve the Deer Park deal in mid-Decem-
Republican lawmakers that a US federal inter-agency body, the Com- ber, the source told Reuters earlier this week.
in the US have been mittee on Foreign Investment in the United But another source who works at the refin-
critical of the proposed States (CFIUS), had delayed approval of its ery was less upbeat. CFIUS approval “could be
sale. agreement with Pemex’s P.M.I. Norteamerica next week, could be early next year,” this source
subsidiary. remarked to the news agency.
WHAT NEXT: The statement did not comment on the rea-
Pemex’s hopes of a brief sons for the delay or say when the sale might Local lawmaker’s opposition
delay may not come to
fruition. move forward, but it quoted company spokes- This development is a setback for Shell, which
man Curtis Smith as saying that Shell was work- had expected to secure a green light for the sale,
ing with US authorities with the aim of wrapping worth nearly $600mn, on November 29.

P4 www. NEWSBASE .com Week 48 02•December•2021