Last Updated Jan 22, 2010 3:41 PM EST
It's unclear if PBF will restart the refinery. But it's likely, considering the man and money behind the deal. PBF is the investment arm of Petroplus Holdings, a major independent refiner and wholesaler of petroleum products in Europe. Tom O'Malley, chairman of Petroplus, formed PBF Partners with backing from private equity firms Blackstone Group and First Reserve Corp. in March 2008.
The three firms have committed $666 million to PBF to pursue acquisitions of crude oil refineries in the United States. O'Malley, who is CEO of the PBF partnership, is well-known in the refining industry. He ran Premcor Inc., a Blackstone portfolio company which was sold to Valero Energy in 2005, the WSJ noted in a 2008 article. In short, O'Malley is very familiar with Valero and its assets.
Valero has agreed it will not remove any equipment while negotiations are under way, according to a statement by the San Antonio-based refiner. There is no specific timetable for when negotiations might be completed.
Valero Chairman and CEO Bill Klesse indicated the company has worked closely with Gov. Markell in pushing the negotiations forward.
In other Valero news today: A tax dispute between the government of Aruba and Valeroover its idled refinery may soon be resolved, according to a Reuters report. The tax dispute has put the brakes on Valero's attempt to sell the refinery.
See additional BNET Energy coverage of Valero Energy:
- Valero Energy Sours on Heavy Crude, Sweet on Ethanol
- Sour Market: With No Buyer in Sight, Valero Closes Delaware Refinery
- Valero to Shutter Some Refinery Operations, Cut Hundreds of Jobs
- Valero CEO: Climate Bill threatens U.S. National Security
- Valero Energy Hunkers Down in Challenging Sour Crude Refining Market
- Oil Refiner Valero Plows More Money Into Renewables with Terrabon Investment
- Shell and Valero Put Their Money Where Their Business Is