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Reuters

HOUSTON– A U.S. nationwide security evaluation has actually postponed the sale of Royal Dutch Shell’s managing interest in a Texas refinery to Mexico’s nationwide oil business, Petroleos Mexicanos (Pemex), Shell stated on Tuesday.

Shell in May revealed a contract to offer its 50%interest in the 302,800- barrel-per-day (bpd) Deer Park, Texas, refinery outdoors Houston to partner Pemex for about $596 million https://www.reuters.com/business/energy/shell-sell-interest-deer-park-refinery-partner-pemex-2021-05-24 The closing was anticipated as early as Wednesday.

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Approval by the Committee on Foreign Investment in the United States (CFIUS) is the last difficulty to the transfer of complete control of the Texas refinery to Pemex, stated individuals acquainted with the matter.

” While we were confident we might conclude the sale of the Deer Park refinery previously in the CFIUS evaluation procedure, we’re still targeting late2021 as a closing date for the transfer of Shell’s interest in the refinery,” Shell representative Curtis Smith stated.

A representative for CFIUS decreased to comment.

One individual near Pemex stated CFIUS approval might occur in mid-December.

An individual who operates at Deer Park stated, nevertheless, there is no particular closing date. “Could be next week. Might be early next year,” the individual stated.

U.S. Representative Brian Babin, a Republican representing southeast Texas, contacted Tuesday for the U.S. federal government to obstruct the sale, stating “Pemex does not have the technical proficiency, security record, and organization practices required to run a center of such scale in the United States.”

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“Allowing a foreign business run by an administration that is hostile towards American energy manufacturers access to our vital facilities threatens my constituents and threatens our nationwide security,” Babin stated in a declaration.

Babin has actually freely slammed the sale considering that June, when he asked for an evaluation by the U.S. Treasury and Energy departments.

Under the sale arrangement revealed in May, Shell would maintain control of the Deer Park center’s chemical plant and the business will have just one refinery in the United States, the 230,611- bpd plant in Norco, Louisiana. (Reporting by Erwin Seba; Additional reporting by Alexandra Alper in Washington and Adriana Barrera and Stefanie Eschenbacher in Mexico City; Editing by David Evans and Peter Cooney)

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