Chevron Completes Acquisition of Pasadena Refining System, Inc.
May 01 2019 - 4:00PM
Business Wire
Chevron U.S.A. Inc. (CUSA), a wholly owned subsidiary of Chevron
Corporation (NYSE: CVX), today announced that it has completed the
acquisition from Petrobras America Inc. of all the outstanding
shares and equity interests of Pasadena Refining System, Inc.
(PRSI) and PRSI Trading LLC for $350 million, excluding working
capital.
PRSI’s 466-acre complex in Pasadena, Texas, adds a second
refinery to CUSA’s Gulf Coast downstream business, which also
includes a refinery in Pascagoula, Mississippi.
“This acquisition builds on the strength of our existing Gulf
Coast business, enabling us to supply more of our retail market in
the region with Chevron-produced products, and positions us for
connectivity to our strong upstream assets in the Permian Basin,”
said Mark Nelson, Chevron’s executive vice president for Downstream
& Chemicals. “We welcome PRSI’s employees into the Chevron
family.”
The Pasadena refinery has the capacity to process approximately
110,000 barrels per day of light crude, direct pipeline connections
to increasing industry and equity crude oil production, connections
to major product pipelines, and dock access to receive and ship
crude oil and refined products. It comprises a 323-acre refinery,
including a tank farm with a storage capacity of 5.1 million
barrels of crude oil and refined products, as well as 143 acres of
additional land.
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FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This news release contains forward-looking statements relating
to Chevron’s operations that are based on management’s current
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statements are not guarantees of future performance and are subject
to certain risks, uncertainties and other factors, many of which
are beyond the company’s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news release.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
marketing and chemicals margins; the company's ability to realize
anticipated cost savings and expenditure reductions; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; technological developments; the
results of operations and financial condition of the company's
suppliers, vendors, partners and equity affiliates, particularly
during extended periods of low prices for crude oil and natural
gas; the inability or failure of the company’s joint-venture
partners to fund their share of operations and development
activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats and terrorist acts, crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond the
company’s control; changing economic, regulatory and political
environments in the various countries in which the company
operates; general domestic and international economic and political
conditions; the potential liability for remedial actions or
assessments under existing or future environmental regulations and
litigation; significant operational, investment or product changes
required by existing or future environmental statutes and
regulations, including international agreements and national or
regional legislation and regulatory measures to limit or reduce
greenhouse gas emissions; the potential liability resulting from
other pending or future litigation; the company’s future
acquisition or disposition of assets or shares or the delay or
failure of such transactions to close based on required closing
conditions; the potential for gains and losses from asset
dispositions or impairments; government-mandated sales,
divestitures, recapitalizations, industry-specific taxes, tariffs,
sanctions, changes in fiscal terms or restrictions on scope of
company operations; foreign currency movements compared with the
U.S. dollar; material reductions in corporate liquidity and access
to debt markets; the effects of changed accounting rules under
generally accepted accounting principles promulgated by
rule-setting bodies; the company's ability to identify and mitigate
the risks and hazards inherent in operating in the global energy
industry; and the factors set forth under the heading “Risk
Factors” on pages 18 through 21 of the company’s 2018 Annual Report
on Form 10-K. Other unpredictable or unknown factors not discussed
in this news release could also have material adverse effects on
forward-looking statements.
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Braden Reddall -- +1 925-842-2209
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