Shell, BP to Close, Sell Oil Refineries in Europe, U.S.

Royal Dutch Shell Plc and BP Plc, Europe’s largest oil companies, plan to close and sell refineries in the U.S. and Germany on declining demand for fuels such as gasoline in developed nations.

BP plans to sell its 475,000 barrel-a-day Texas City refinery in Texas and its 266,000 barrel-a-day Carson plant in California, the London-based company said on Feb. 1.

Shell plans to stop oil-processing at its 110,000 barrel-a- day Hamburg facility in 2012 after failing to find a buyer, the company based in The Hague said on Jan. 12.

Following are two tables. The first lists refineries around the world that have shut, are slated for permanent closure or conversion, units idled for economic reasons, and those that are up for sale. The second shows refinery sales that have been agreed or completed since early 2010. Capacity is shown in thousands of barrels of oil a day.

                 FOR SALE, CLOSURE OR CONVERSION

Company      Refinery         Status                 Capacity

EUROPE

Petroplus    Reichstett       May stop oil           85
             France           processing in the
                              second quarter,
                              company said on
                              Feb. 3. Conversion
                              to terminal
                              announced Oct. 21.

Unipetrol    Pardubice        Nine-week shutdown     20
Paramo       Czech Republic   from Jan. 20 on
                              low profits.

Shell        Hamburg          Plans to convert       110
             Germany          site into terminal
                              in 2012, after
                              failing to find
                              buyer, company
                              said on Jan. 12.

OMV          Arpechim         Shut in June on        70
             Romania          weak demand. First
                              contacts with
                              possible buyers,
                              CEO said Nov. 19.

Tamoil       Cremona          Plans to convert to    95
             Italy            a storage facility
                              at the end of 2011,
                              company said Nov. 12.

Conoco       Wilhelmshaven    Production won’t be    260
             Germany          resumed, CEO said Oct.
                              27. Plans remain for
                              sale or conversion.

Conoco       Humber           Will consider selling  221
             U.K.             at “right price,”
                              CEO said Oct. 27.

Lyondell-    Berre            May sell unless        105
Basell       France           profits improve, CEO
                              said Sept. 16.

PKN Orlen    Lietuva          Under review because   200
             Lithuania        of low profitability,
                              company said Aug. 15.

Murphy Oil   Milford Haven    Up for sale, company   130
             Wales            said July 22.
                              Transaction expected
                              in first quarter 2011.

Total        Lindsey          Petroplus CEO said     221
             U.K.             April 22 company
                              makes non-binding
                              offer.

Total        Dunkirk          Conversion to          137
             France           terminal. Announced
                              in March 2010.

Chevron      Pembroke         Up for sale.           210
             U.K.             Announced in March
                              2010.

Petroplus    Teesside         Conversion to          117
             U.K.             terminal end-2009.

Total        Gonfreville      Crude unit shut in     173
             France           August 2009.

Shell        Stanlow          Up for sale.           233
             U.K.             Announced in August
                              2009.

NORTH/CENTRAL AMERICA

BP           Texas City       Up for sale, company   475
             Texas            said Feb. 1.

BP           Carson           Up for sale, company   266
             California       said Feb. 1.

Valero       Aruba            At full rates since    275
                              Jan. 31. Plant was
                              shut in July 2009 on
                              poor economics.
                              Company pursues sale
                              or joint venture.

Marathon     6 refineries     To be spun off into    1,140
                              Marathon Petroleum,
                              company said Jan. 13.

Western      Yorktown         In process of          71
             Virginia         converting to
                              storage terminal,
                              company said Dec. 8.
                              Is also negotiating a
                              sale and deal may
                              occur in first or
                              second quarter.

Exxon        Chalmette        Some units will be     196
             Louisiana        stopped, company
                              said in August.

Murphy Oil   Meraux           Up for sale.           125
             Louisiana        Announced July 22.

Murphy Oil   Superior         Up for sale.           35
             Wisconsin        Announced July 22.

Chevron      Kapolei          Operations may be      54
             Hawaii           reduced, company
                              announced in March
                              2010.

Sunoco       Eagle Point      Shut on poor           150
             New Jersey       economics in
                              November 2009.
                              Possible conversion
                              to biofuels announced
                              in February 2010.

Alon         Bakersfield      Shut in January 2009   68
             California       after Big West went
                              bankrupt. Alon bought
                              the plant in February
                              2010 and said Jan. 28
                              it expects to start
                              production in June.

Western      Bloomfield       Shut in late 2009 on   17
             New Mexico       poor economics.
                              Operates as a
                              terminal.

Valero       Corpus Christi   FCC shut on economics  20
             East, Texas      in March 2009.

Shell        Montreal         Conversion to          130
             Canada           terminal after
                              operations ceased in
                              Oct. 2010.

ASIA PACIFIC

Showa Shell  Keihin           Permanent closure      120
             Japan            of Ogimachi crude
                              unit in September
                              2011.

JX Holdings* Negishi          Permanent closure      70
             Japan            of a crude unit in
                              October 2010.

JX Holdings* Mizushima        Permanent closure      110
             Japan            of crude unit 2 in
                              June 2010.

JX Holdings* Oita             Permanent closure      24
             Japan            of crude unit 1 in
                              May 2010.

Fuji Oil     Sodegaura        Permanent closure      52
             Japan            of crude unit 1 in
                              November 2010.

Nihonkai Oil Toyama           Conversion to          60
             Japan            terminal in March
                              2009.

CPC Corp.    Kaohsiung        FCC shut on            25
             Taiwan           economics in
                              February 2009.

*JX Holdings Inc. is the parent company of JX Nippon Oil &
Energy Corp., Japan’s largest refiner, and was formed in April
2010 after the merger of Nippon Oil Corp. and Nippon Mining
Holdings Inc.


                    COMPLETED OR AGREED SALES

Company      Refinery         Status                 Capacity

Ineos        Grangemouth      PetroChina buys        210
             Scotland         50 percent stake.
                              Announced Jan. 31.

Ineos        Lavera           PetroChina buys        210
             France           50 percent stake.
                              Announced Jan. 31.

Sunoco       Toledo           PBF Energy agrees      170
             Ohio             to buy on Dec. 2.

Shell        Gothenburg       Agreed sale to St1     78
             Sweden           Oy of Finland on Oct.
                              27.

Marathon     St. Paul Park    TPG Capital agrees     74
             Minnesota        to buy plant on
                              Oct. 6.

Valero       Paulsboro        PBF Energy agrees to   166
             New Jersey       buy on Sept. 27 for
                              $360 million.

Shell        Heide            Agreed sale to         91
             Germany          U.K.’s Klesch & Co.
                              on Aug. 20.

Valero       Delaware City    Sold to PBF Energy     190
             Delaware         in April 2010.

Shell        Marsden Pt       Shell sells 17%        109
             New Zealand      share to Infratil
                              and government
                              pension fund in
                              March 2010.

Ruhr Oel*    Gelsenkirchen    Russia’s Rosneft       266
             Germany          agrees to buy PDVSA’s
                              50 percent stake in
                              Ruhr Oel Oct. 15.

Ruhr Oel*    Miro             Russia’s Rosneft       311
             Karlsruhe        agrees to buy PDVSA’s
             Germany          50 percent stake in
                              Ruhr Oel Oct. 15.

Ruhr Oel*    Bayernoil        Russia’s Rosneft       240
             Neustadt         agrees to buy PDVSA’s
             Vohburg          50 percent stake in
             Germany          Ruhr Oel Oct. 15.

Ruhr Oel*    PCK              Russia’s Rosneft       226
             Schwedt          agrees to buys PDVSA’s
             Germany          50 percent stake in
                              Ruhr Oel Oct. 15.

* Ruhr Oel, part owned by BP, has a 100 percent stake in the
Gelsenkirchen refinery and a 24 percent share in Miro’s
Karlsruhe plant. It also holds a 25 percent share in Bayernoil
and a 37.5 percent stake in the Schwedt facility. The sale was
announced on Oct. 15.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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