The NY Times reports that the Saudis are bidding on Lyondell’s Houston refinery:
“The Saudi national oil company is making a bid to significantly expand its operations in the United States at a critical moment in the always uneasy relations between the United States and Saudi Arabia.”
“… Saudi Aramco sees the potential acquisition as a way to shore up its exports at a time of erosion in the oil business on which the Saudi economy is still largely reliant.”
“Energy experts who have been briefed on the negotiations say that Saudi Aramco is a leading contender and that the price for the refinery could be as much as $1.5 billion.”
“The Lyondell plant has a capacity to refine nearly 270,000 barrels a day of crude, which could increase Saudi Aramco’s capacity to refine its oil on the Gulf coast by about 50 percent. The refinery produces not only gasoline and other fuels, but also can also produce feedstocks for petrochemical production.”
“The Lyondell refinery, one of the largest in the United States, is designed to process low-quality, high sulfur crude oil. In recent years it has mostly processed Mexican crude and Canadian heavy oil from oil sands, but it could just as easily process low grade Saudi crude that refineries in Europe and Asia are not designed to refine.”
I would add that an acquisition like this makes Saudi Aramco look opportunistic and in growth mode ahead of its IPO…
Here is the link: http://www.nytimes.com/2016/09/13/business/energy-environment/saudi-bid-on-a-houston-oil-refinery-is-a-big-strategic-bet.html?ref=business
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