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Shell Welcomes Potential Buyers for Bakersfield Refinery -
Reiterates Reasons for Announced Closure of Facility
HOUSTON, April 6 /PRNewswire/ -- Shell Oil Products US today said it welcomes
discussions with potential buyers of the Bakersfield Refinery but reiterated its
reasons for the planned closing of the refinery in October. Shell announced in
November of 2003 that it would be closing the facility in October of 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990716/SHELL )
"Since so many people have questioned if the refinery is for sale, I want to
make it clear that it is, and to state unequivocally that we are willing to sit
down with any credible buyers to discuss such a deal," said Lynn Elsenhans,
President and CEO of Shell Oil Products US. "We still believe, however, that
once potential buyers take a close look at the facility and its available crude
supply, that they will reach the same conclusion that we have. That this
refinery is not economically viable going forward for a number of reasons,
including the cost and availability of the crude needed to run the facility."
Elsenhans stated that the facts on which Shell based its decision to close the
refinery have not changed. "This is a land-locked refinery, which because of a
decline in its crude source -- San Joaquin Valley heavy crude from the Kern
River Field -- makes its continued operation no longer economically viable."
Shell also restated its commitment to supply its branded customers with gasoline
and diesel. "We understood that there would be many questions and we wanted to
have the time needed to properly answer and respond to those questions. That is
why we announced the closure 11 months ahead of time," said Elsenhans.
Elsenhans alsocommented on recent press and other reports questioning Shell's
motives and reasons for closing the refinery. "Today, certain internal
documents regarding the operation of the Bakersfield Refinery have been made
public by a California special interestgroup. We are disappointed that these
documents were publicly released, but note that they do show that the
Bakersfield Refinery lost money in 2001 and 2002, and that the profit that we
project for the refinery in 2004 does not justify maintaining ourinvestment in
the facility," said Elsenhans. "Furthermore, the declining utilization rates
illustrate that it will not be economically viable to operate the facility going
forward."
Additional information regarding the closure of the facility can be found at
http://www.shellbakersfieldrefinery.com/ .
Shell Oil Products US, a subsidiary of Shell Oil Company, is a leader in the
refining, transportation and marketing of fuels, and has a network of nearly
7,500 branded gasoline stations in the WesternUnited States. Shell Oil Company
is an affiliate of the Royal Dutch/Shell Group of Companies (NYSE:RD/SC). For
more information, please visit http://www.shell.com/
http://www.newscom.com/cgi-bin/prnh/19990716/SHELL
DATASOURCE: Shell Oil Products US
CONTACT: Cameron Smyth of Shell Oil Products US, +1-661-253-0737
Web site: http://www.shell.com/
http://www.shellbakersfieldrefinery.com/