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Royal Dutch Shell confirms delay in sale of Texas refinery to Mexico's Pemex

Exclusive-New delay hits Royal Dutch Shell's sale of Texas refinery Mexico's Pemex delay -sources
Exclusive-New delay hits Royal Dutch Shell's sale of Texas refinery Mexico's Pemex delay -sources   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Stefanie Eschenbacher and Erwin Seba</p> <p><span class="caps">MEXICO</span> <span class="caps">CITY</span>/HOUSTON – Royal Dutch Shell on Thursday confirmed a Reuters report that the sale of its controlling interest in a Texas refinery to Mexican state oil company Petroleos Mexicanos has been delayed until next year.</p> <p>A review of the deal by the Committee on Foreign Investment in the United States, an national security group chaired by the U.S. Treasury, had been expected to wrap up this month but has been extended into next year, Shell spokesperson Curtis Smith said.</p> <p>Shell in May disclosed an agreement to sell its 50% interest in the 302,800-barrel-per-day (bpd) Deer Park, Texas, refinery outside Houston to partner Pemex for about $596 million. The closing was expected this month, officials have said. </p> <p>“We were hopeful we could conclude the sale before the end of the month, however, it now looks like the full amount of time will be needed,” Smith said. “We will continue to cooperate with <span class="caps">CFIUS</span> as they review the transaction.” </p> <p>The <span class="caps">CFIUS</span> approval process runs until Jan. 13 for obtaining regulatory approvals, according to a Pemex source familiar with the matter.</p> <p>“After <span class="caps">CFIUS</span> approval, the transfer process will take days,” said the source, who spoke on condition of anonymity.</p> <p>The delay signals <span class="caps">CFIUS</span> has moved past its initial 45-day review and into a second, investigative period. The committee is charged with reviewing sales of critical U.S. infrastructure to foreign buyers for national security implications. </p> <p>The second phase does not signal a potential rejection by the security group. Questions raised during the initial review can be resolved with a letter of agreement or a mitigation agreement, according to a former <span class="caps">CFIUS</span> official not involved in the Pemex review.</p> <p/> </div>