Tom Nimbley, chief executive officer, PBF. (File photo)
PARSIPPANY, US: PBF Energy Inc said its subsidiary has signed a definitive agreement to purchase the 155,000 barrel-per-day Torrance refinery, and related logistics assets, from ExxonMobil. The purchase price for the assets is $537.5 million, plus working capital to be valued at closing. The deal is expected to close in the second quarter of 2016.
With the acquisition, PBF will increase its total throughput capacity to approximately 900,000 barrels per day.
The transaction is expected to be immediately accretive to earnings and the refinery will be restored to full working order prior to close.
With PBF’s expanding geographic footprint and organizational needs, the company has decided to make certain management changes.
The company will set up a wholly-owned subsidiary, PBF Energy Western Region LLC, to hold all of the Torrance related assets. Jeffrey Dill will transition to the role of president, PBF Energy Western Region LLC.
“We are excited to be adding a refinery with Torrance’s complexity and we look forward to entering the West Coast market
. Upon completion of these two pending transactions, we will have operations spanning four PADDs and have diversified and increased our commercial footprint and flexibility,” said Tom Nimbley, chief executive officer, PBF.
In addition to refining assets, the transaction includes a number of high-quality logistics assets - a sophisticated network of crude and products pipelines, product distribution terminals and refinery crude and product storage facilities. The most significant of the logistics assets is a 171-mile crude gathering and transportation system, which delivers San Joaquin Valley crude oil directly from the field to the refinery.
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