Chevron Notes -- January 31, 2019

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Chevron Notes -- January 31, 2019

Re-posting because this is really, really cool. Some time ago I was going to post a note asking rhetorically when the US majors would start / consider building new refineries to process light oil. It looks we might have an answer to that rhetorical question I was remiss in posting. Re-posting from earlier today:
CVX: will buy Brazilian refinery along US coast; will pay $350 million for the Petrobras refinery
Chevron will acquire all the outstanding shares and equity interests of Pasadena Refining System, which includes the Texas refinery with 110,000 b/d of nameplate capacity and associated trading arm PRSI.
The deal is expected to close by June 2019.
"This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula," said Pierre Breber, Executive Vice President of Chevron Downstream and Chemicals.
In February 2018, Petrobras launched the sale of Pasadena along with associated crude and products storage of 5.1mn bl and maritime terminal, logistics and inventory. An adjacent 143 acres that is also part of the Pasadena package could be used to build additional processing units, terminalling or storage capacity.
Speaking of Chevron, quick! How long has Chevron been in the Permian? I thought I posted this story earlier. I may have; I can't find it now. If I did not post the story it was because I thought it was another "ho-hum" story. In the big scheme of things it is, I suppose, but the factoid about how long Chevron has been in the Permian is mind-blowing. At the linked article:
Unlike many oil and gas firms who had given up some of their acreage in the Permian before the shale revolution, supermajor Chevron and its legacy companies have been sticking with the huge acreage position in the basin since the early 1920s Ms Paraskova references Chevron at this link. I think that's' amazing -- discovering the Permian one hundred years ago and holding on to it all these years. Simply amazing.


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