Shell sells Bakersfield refinery

Shell Oil Company (SOC) announced yesterday that its Shell Oil Products US subsidiary has signed an agreement to sell its Bakersfield refinery, located in Bakersfield, CA to a subsidiary of Flying J.

The Bakersfield Refinery, which began production in 1932 as the 1,500 barrel per day Mohawk Refinery, is located in California's Central Valley and currently has the capacity to refine up to 70,000 barrels of crude oil per day.

The sale is expected to close in the first quarter of 2005 after all regulatory approvals are obtained. Terms of the sale were not disclosed.

"We're pleased to reach this sale agreement, which we recognise is important to many people in Bakersfield and beyond," said Lynn Laverty Elsenhans, President of SOC. "While the facility is no longer strategic to Shell and does not meet our criteria for continued investment, Flying J sees an opportunity. With this sale, the refinery will continue to make gasoline and diesel for the California Central Valley and provide employment opportunities in the region."

Shell will continue to own and operate certain pipelines that serve the refinery. Shell will also continue to own the nearby Bakersfield Products Terminal, but Ogden, Utah-based Flying J will operate it under the terms of a long-term lease.