Energy producer Chevron, a wholly owned subsidiary of Chevron Corporation, has announced that it has signed a share purchase agreement with petroleum products marketer and refiner Petrobras America to acquire all the outstanding shares and equity interests of refinery company Pasadena Refining System, which includes the refinery in Texas, and brute petroleum and refined products distributor PRSI Trading LLC, for $350-million excluding working capital.
“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 realise synergies through coordination with our refinery in Pascagoula,” Chevron downstream and chemicals VP Pierre Breber says.
Assets include a refinery with a capacity to process about 110 000 bbl/d of light crude, direct pipeline connections to increasing industry and equity crude oil production, connections to major product pipelines as well as waterborne access to receive and ship crude oil and refined products. The 466-acre complex is in Pasadena, Texas. 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.
The acquisition will add to the refining network of Chevron USA, which includes a refinery in Pascagoula, Mississipi, two facilities in California, in El Segundo and Richmond, and the Salt Lake refinery in Utah.
The acquisition is subject to customary closing conditions, including regulatory approvals.
Effective April 1, 2019, Breber replaces Patricia Yarrington as VP and CFO. She has elected to retire after 39 years of extraordinary service with the company.
In related moves, Mark Nelson, currently midstream, strategy and planning VP succeeds Breber as downstream and chemicals executive VP. Chevron supply and trading VP Colin Parfitt became midstream VP. Both appointments were effective March 1, 2019.
“Over the course of her career, Yarrington has distinguished herself as one of our most outstanding and inspiring leaders. Her leadership, insight and judgment were instrumental in directing our financial strategy over the last decade, and essential in guiding our company through unpredictable commodity market conditions in recent years,” says Chevron chairperson and CEO Michael Wirth.
Breber, 54, joined Chevron in 1989. He became VP and treasurer in 2009, gas and midstream VP in 2014, gas and midstream executive VP in 2015 and downstream and chemicals executive VP of his current position in 2016.
“Breber is uniquely qualified to be our next CFO, having served in senior finance roles and also in operating roles across our downstream, midstream and upstream businesses. His deep financial background and broad knowledge of our operations will be valuable in ensuring we remain financially strong and create lasting shareholder value,” notes Wirth.
Nelson, 55, brings more than three decades of marketing, operations and strategic planning experience to his new role. Prior to his current position, which he assumed in 2018, Nelson served as corporate strategic planning VP; international products president, with responsibility for Chevron’s refining and marketing businesses in Europe, Africa, the Middle East and Asia; and Chevron Canadian upstream business president in Calgary, Alberta.
“Nelson’s breadth of experience, results-driven leadership and deep knowledge of our downstream and chemicals business makes him the right person to take the helm of this significant segment of Chevron,” he notes.
Parfitt, 54, began his career with Chevron in 1995 with Chevron International Oil Company, based in London. Since that time, he has held a variety of leadership, sales and marketing positions in Chevron’s supply and trading, oronite additives, lubricants and Americas Products businesses.
“Parfitt is an experienced leader who will ensure that our midstream business continues to create value in supporting our upstream and downstream assets, and enable Chevron to continue to deliver the energy that improves lives and powers the world forward,” Wirth adds.
Breber, Nelson and Parfitt will report to Wirth in their new roles.