Chevron U.S.A. Inc. (CUSA), a wholly owned subsidiary of Chevron
Corporation (NYSE: CVX), today announced that it has signed a Share
Purchase Agreement with Petrobras America Inc. (Petrobras) to acquire
all the outstanding shares and equity interests of Pasadena Refining
System, Inc., which includes the refinery in Texas, and 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 realize
synergies through coordination with our refinery in Pascagoula,” said
Pierre Breber, Executive Vice President of Chevron Downstream &
Chemicals.
Assets include a refinery with a capacity to process approximately
110,000 barrels per day 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 CUSA, which includes
a refinery in Pascagoula, Miss., 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.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This news release contains forward-looking statements relating to
Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum, chemicals
and other energy-related industries. Words or phrases such as
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“trends,” ”guidance,” “focus,” “on schedule,” “on track,” "is slated,”
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expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, many of which
are beyond the company’s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such forward-looking statements. The
reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news release. Unless
legally required, Chevron undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemicals margins; the company's ability to realize anticipated cost
savings and expenditure reductions; actions of competitors or
regulators; timing of exploration expenses; timing of crude oil
liftings; the competitiveness of alternate-energy sources or product
substitutes; technological developments; the results of operations and
financial condition of the company's suppliers, vendors, partners and
equity affiliates, particularly during extended periods of low prices
for crude oil and natural gas; the inability or failure of the company’s
joint-venture partners to fund their share of operations and development
activities; the potential failure to achieve expected net production
from existing and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of planned
projects; the potential disruption or interruption of the company’s
operations due to war, accidents, political events, civil unrest, severe
weather, cyber threats and terrorist acts, crude oil production quotas
or other actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond the
company’s control; changing economic, regulatory and political
environments in the various countries in which the company operates;
general domestic and international economic and political conditions;
the potential liability for remedial actions or assessments under
existing or future environmental regulations and litigation; significant
operational, investment or product changes required by existing or
future environmental statutes and regulations, including international
agreements and national or regional legislation and regulatory measures
to limit or reduce greenhouse gas emissions; the potential liability
resulting from other pending or future litigation; the company’s future
acquisition or disposition of assets or shares or the delay or failure
of such transactions to close based on required closing conditions; the
potential for gains and losses from asset dispositions or impairments;
government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, tariffs, sanctions, changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; material reductions in corporate
liquidity and access to debt markets; the effects of changed accounting
rules under generally accepted accounting principles promulgated by
rule-setting bodies; the company's ability to identify and mitigate the
risks and hazards inherent in operating in the global energy industry;
and the factors set forth under the heading “Risk Factors” on pages 19
through 22 of the company’s 2017 Annual Report on Form 10-K. Other
unpredictable or unknown factors not discussed in this news release
could also have material adverse effects on forward-looking statements.
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