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Oil & Gas Technical Compendium

Shell to supply crude to Pemex's Texas refinery under long-term pact

Mexican state oil company Pemex on Thursday signed a long-term crude supply contract with Royal Dutch Shell Plc as part of its acquisition of the Deer Park refinery in Texas.Pemex and Shell in May announced the transaction, which is worth almost $600 MM and will make the Mexican firm the sole owner of the refinery near Houston. The facility has capacity to process 340,000 bpd.Shell will supply about 200,000 bpd of foreign and U.S. crude to the plant for at least 15 years, according to a source and a July document seen by Reuters.A Pemex unit expects to supply up to 115,000 bpd of Mexican crude to the refinery and receive about 230,000 bpd of refined products that could go to Mexico. The transfer secures for Mexico a greater supply of fuel p.....

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