ExxonMobil and Petróleos de Venezuela sell Chalmette Refinery to PBF Energy

American oil and gas firm ExxonMobil and Venezuela’s national oil company Petroleos de Venezuela will sell a jointly owned Chalmette Refining for $322m to PBF Energy.

Besides the Louisiana refinery, the agreement includes related logistics assets as well, which can increase PBF’s total capacity to more than 725,000 barrels per day.

Located outside of New Orleans, the dual-train coking refinery has a daily capacity of 189,000 barrels and has a Nelson Complexity of 12.7.

Capable of processing both light and heavy crude oil, the refinery is strategically located along the Gulf Coast with strong logistics connectivity, which enables flexible raw material sourcing and offers product distribution opportunities, including the scope for exports.

Following the deal, PBF will own the MOEM Pipeline, which allows it access to the Empire Terminal, as well as the CAM Connection Pipeline, which enables it to connect with the LOOP facility through a third party pipeline.

PBF will also take over a 80% stake in each of the Collins Pipeline Company and T&M Terminal Company, both located in Collins, Mississippi, which can serve as a clean products outlet for the refinery via the Plantation and Colonial Pipelines.

The transaction will also include a marine terminal which allows import of waterborne feedstocks and loading or exporting finished products, a clean products truck rack that offers access to local markets, and a crude and product storage plant having around 7.5 million barrels of shell capacity.

ExxonMobil Refining & Supply Company president Jerry Wascom said: "This decision is the result of a strategic assessment of the site and how it fits with our large US Gulf Coast Refining portfolio."

PBF Energy chief executive officer Tom Nimbley said: "Upon completion, we will have increased our refining capacity by 35% and added meaningful Gulf Coast assets to our businesses.

"We will have operations in the Gulf Coast, Mid-Continent and East Coast and have diversified and increased our commercial footprint and flexibility."