May 1, 2019 / 9:10 PM / 18 days ago

Chevron completes purchase of Houston-area refinery from Brazil's Petrobras

HOUSTON, May 1 (Reuters) - Chevron Corp completed a $350 million purchase of a refinery in the Houston suburb of Pasadena, Texas, from Brazil's national oil company Petrobras , Chevron said in a statement.

The sale was agreed to in January, but Chevron put the transfer of the 112,229 barrel-per-day plant's ownership on hold on April 2, telling Petrobras it had to prove the refinery would operate as promised, sources told Reuters.

The Pasadena refinery is the second on the U.S. Gulf Coast for Chevron, which is based in San Ramon, California.

Chevron wanted to refinery to process sweet crude coming from its oil fields in the Permian Basin of Texas.

"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 and chemicals.

In addition to the refinery, Chevron acquired PRSI, a Petrobras subsidiary that operates the refinery and owns subsidiary PRSI Trading, which trades in crude and refined products markets. PRSI owns a 5.1-million-barrel storage tank farm and an additional 143 acres of land along the Houston Ship Channel.

Chevron also operates a 352,000-bpd refinery in Pascagoula, Mississippi. (Reporting by Erwin Seba; Editing by Lisa Shumaker)

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