Chevron agrees to buy Texas oil refinery from Petrobras unit

Chevron has reportedly reached an agreement to purchase a Texas-based oil refinery operated by Brazilian oil firm Petrobras’ subsidiary Pasadena Refining System.

Two unidentified sources familiar with the matter said that the US oil firm will use the 112,000bpd refinery to accommodate shale from its West Texas operations.

Chevron may make the proposed acquisition public this quarter.

Petrobras put the Texas refinery up for sale early last year in a bid to reduce its debt.

The company has invested more than $1.18bn in the plant since it purchased its first stake in the operation in 2006.

Petrobras aims to achieve a target of $21bn in asset sales to decrease its debt.

According to the sources, pipeline operator Kinder Morgan has elected to walk away from a proposed joint venture to operate a terminal at the site.

Chevron’s shale production during the third quarter has increased by 150,000bpd. The company is looking to own a second Gulf Coast facility to handle the rise in output.

A producer of gasoline and distillates, the Pasadena plant is spread across 192 acres on the Houston Ship Channel.

The acquisition also comprises an additional 274 acres of terminal and other cleared land.

The site contains storage tanks with a capacity of 5.1 million barrels and a marine terminal for exports.