Motiva Enterprises LLC (“Motiva”) announced today that it has signed a letter of interest to sell its Delaware City Refinery, located in Delaware City, DE, to The Premcor Refining Group Inc. The sale will take place for consideration of approximately $800 million, plus contingent payments totaling up to $125 million, and an additional amount representing the value of refined product and crude inventory at closing. The Delaware City Refinery, which began production in 1957 as part of the Tidewater Oil Company’s refining system, is located 15 miles south of Wilmington and has the capacity to refine in excess of 180,000 barrels of crude oil per day. The sale is expected to close in the second quarter of 2004 after all regulatory approvals are obtained. “This transaction is consistent with our ongoing efforts to better balance our mix of refining and marketing assets, ” stated John Boles, president and chief executive officer, Motiva. “It will also better position us to meet our financial and operational targets while allowing us to focus our capital resources on the company’s three remaining Gulf Coast refineries and other lines of businesses. Our Gulf Coast refineries are presently connected to pipeline systems that serve the Northeast.” The refinery employs approximately 650 people. In addition, there are approximately 600 employees of contractors that work at the facility. Motiva and Premcor will work with employees to address employment-related issues and Motiva has been assured by Premcor that Premcor will fulfill its legal obligations with respect to all employees. Motiva has informed Premcor of the commitments Motiva has made to the State of Delaware, and Premcor has expressed its commitment to fulfill these obligations. “We explained to Premcor that there are a number of initiatives underway at the facility to improve its environmental, safety and operational performance,” stated Boles. “Premcor has expressed its intentions to continue these efforts to improve the facility’s performance.” Motiva is committed to marketing the Shell brand in Delaware and other Northeast markets through its retail and wholesale networks. Contractual obligations to our customers will continue to be honored. Other details regarding the transaction will be forthcoming as they are developed. Headquartered in Houston, TX, Motiva Enterprises LLC, is a refining and marketing joint venture owned by affiliates of Shell and Saudi Aramco. Motiva’s marketing operations support a network of nearly 11,000 Shell- and Texaco-branded gasoline stations in the Eastern and Southern United States. In addition to the Delaware City Refinery, Company assets include three other refineries located in Norco, LA; Convent, LA and Port Arthur, TX, capable of refining approximately 705,000 barrels per day (bpd), and ownership or partial interests in 47 product terminals. For more information contact:
Spiros Mantzavinos
Motiva
Phone: (302) 834-6070
Houston, TX 77002
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