Published on : Jul 30, 2015
Total Petrochemicals and Refineries USA, Inc. is looking for a buyer to sell half of the Port Arthur refinery.
The head of Human Resources at Total, Wendy Ashworth, said that selling 505 of the company would lead the company have a strategic alliance similar to the company’s joint ventures in Qatar, Saudi Arabia, and South Korea.
If such an event happens, Ashworth commented that continue to have the charge of operating the Port Arthur facility.
The facility at Port Arthur is a combination of a petrochemicals platform and integrated refining, which is one of the six strategically located platforms of Total Refining Chemicals all over the world.
Currently, Port Arthur is1000% owned by Total and the site of the petrochemical operation is a joint venture with BASF (60% BASF and 40% Total)
The strategic platforms of Total outside of Europe already operate as joint ventures, and the company was studying the possibility of long term strategic alliance for the Port Arthur platform.
If such a partnership happens, it would ensure ongoing development of this high value unit, which was recently benefitted from substantial investments.
According to a leading news company, Total is moving capital toward production and has engaged investment bank Lazard for advice on the deal.
U.S. refiners, mainly along the Gulf Coast like Total Port Arthur are enjoying profits like never before, and also wetting up U.S. shale and low cost sands crude in Canada, while exporting fuel to premium market.
The news company said that 50% share of Total Port could be as much as US$188 million, however, other factors such as location, legal risk, and complexity may affect the price.
The news company further added that potential bidder could be companies from the oil sand patch of Canada that are already shipping large volumes of crude to the U.S. Gulf.