Royal Dutch Shell has agreed to sell its stake in Deer Park refinery in the US to partner Petroleos Mexicanos (Pemex) in a deal worth $596m.

The deal consideration includes cash and debt and the value of hydrocarbon inventory.

Mexico’s national oil company Pemex, through its subsidiary PMI Norteamerica, currently owns a 49.995% stake in Refining Limited Partnership, which operates the refinery.

Subject to regulatory approvals, Pemex will become the sole owner of the refinery by acquiring Shell Oil Company’s 50.005% stake in the partnership.

Shell downstream director Huibert Vigeveno said: “Shell did not plan to market its interest in the Deer Park refinery. However, following an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them.

“Pemex has been our strong and active partner at the Deer Park Refinery for nearly 30 years and we will continue to work with them in an integrated way, including through our on-site chemicals facility, which Shell will retain.

“We’re proud of our 90-plus year history as an operator and neighbour at Deer Park and we will continue to play an active role in the community.”

The sale is a part of Shell’s strategy to reduce its global refining footprint while retaining value through its chemicals and trading activities.

Upon completion of the deal in the fourth quarter of 2021, Shell Chemical will continue to operate the Deer Park Chemicals facility located adjacent to the Deer Park refinery.

With a crude oil capacity of 340,000 barrels per day (bpd), the Deer Park Refinery is equipped to process crudes and produce products including gasoline, aviation fuels, diesel fuels, ship fuel and petroleum coke.

Separately, Shell has selected Fugro GB North Marine to undertake geophysical and geotechnical site survey works over the Pensacola prospect in the UK North Sea.

The work forms part of the preparation for the drilling of the Pensacola exploration well located in licence P2252.