It’s official – The Delaware City refinery has a new owner.
The Delaware City refinery has a new owner.
Switzerland-based Petroplus Holdings announced today that its investment vehicle, PBF Energy, has completed the purchase of the refinery from Valero Energy Corporation for $220 million. In a statement, the company says it’s the largest independent refiner and wholesaler of petroleum products in Europe.
PBF plans to start major maintenance work in preparation to restart operations at the refinery in the first half of 2011.
Valero announced last November that because of high costs and low profit margins, it would shut down the plant and lay off 550 workers.
Governor Markell has been involved in the negotiations with Valero and PBF to try to fill the job void. The state has committed to a $20 million loan from the strategic planning fund as an incentive for PBF.
“We are pleased that we have reached this agreement with PBF,” said Valero Chairman and CEO Bill Klesse. “The transaction reflects incremental cash flow and a good value for the terminal and shut-down refinery units. For the state of Delaware, this provides the potential to regain manufacturing jobs in the future. We thank Governor Markell for his active participation in facilitating our agreement.”
The deal in effect brings a familiar face back to the Delaware City operation.
Tom O’Malley is a chairman at Petroplus. He’s also a former chairman and CEO of Premcor, which sold the refinery to Valero in 2005.