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Valero hopes to conclude Delaware City sale soon
Tue Apr 6, 2010 12:17pm EDT
Stocks

Valero Energy Corporation
VLO.N
$20.11
-0.63-3.04%
3:00pm EDT

Petroplus Holding AG
PPHN.VX
CHF21.10
-0.14-0.66%
10:31am EDT

The Blackstone Group L.P.
BX.N
$14.68
+0.04+0.27%
3:03pm EDT
* Valero says Delaware City sale to PBF moving ahead

STOCKS | ENERGY

* PBF's first acquisition of an U.S. refinery

NEW YORK, April 6 (Reuters) - Valero Energy Corp (VLO.N) on Tuesday said it hopes to soon close the deal for the sale of its 210,000 barrel per day Delaware City, Delaware, refinery to PBF Investments.

"We are still hopeful we will announce a deal soon," said Bill Day, a spokesman for Valero.

The sales contract for the refinery had been set to be signed at the end of March, Valero's chief executive officer Bill Klesse said earlier.

PBF formally bid for the plant and storage and terminal assets in late January.

The refinery, part of the Premcor acquisition, has been shuttered since November 2009 due to poor refining economics in the region.

The $2 billion PBF is a partnership of Swiss-based refiner PetroPlus (PPHN.VX) ; Tom O'Malley, chairman of PetroPlus; as well as private equity groups Blackstone Group (BX.N) and privately-held First Reserve. It was formed with the express purpose to buy U.S. refineries.

Delaware City is the first refinery on the list. PBF has also said it would bid for Valero's 195,000 bpd refinery in Paulsboro, New Jersey.

In 2005, O'Malley sold Premcor's four refineries to larger rival Valero in a $6.9 billion cash and stock deal.

A representative of Blackstone Group declined comment.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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