| Shell-Pemex Partnership a Continuing Success Story
Ten years ago, the Shell Deer Park refinery was looking for a business partner to help it convert from a refiner of light, low-sulfur crude oil to less expensive heavy, high-sulfur crude oil. At the same time, Petroleos Mexicanos (Pemex) was producing increasing volumes of heavy crude oil and needed a major customer.
More than $1 billion of refinery upgrades later, the Shell-Pemex 50/50 alliance is thriving. The refinery is world-class with a capacity of 340,000 barrels a day. In Shell Deer Park, Pemex has a customer for more than 200,000 barrels a day of Maya crude oil, which is shipped from Mexico and processed into refined products that are sold throughout North America. The balance of the refinery’s crude oil is mostly from Texas and Louisiana.
Shell and Pemex employees celebrated the 10-year anniversary of the partnership with acknowledgement of past accomplishments and an eye on future opportunities.
Tim Hake, president and CEO of Shell Deer Park Refining Company, said, “The partnership has a high level of trust, built around a robust, past relationship between Shell and Pemex in the trading arena. Throughout the many milestones of our partnership, open communication has remained a high priority, one that serves us well.”
Rocio Cardenas, director general of PMI Norteamerica, said, “Pemex considers this partnership as one of its most significant. Often Pemex personnel say, ‘We have six refineries in Mexico and one in the United States.’ That’s because we think of the Shell Deer Park refinery as part of our system, and we’ve enjoyed a good experience with our partner.”
In 2000, the refinery achieved an industry-leading OSHA safety recordable rate of 0.5. At the peak of phase two expansion activity, known as Maya II, as many as 1,500 contract construction workers amassed 3.5 million hours in the field without incurring a single lost-time injury or environmental incident, both world-class. In 2002, the refinery attained best-ever reliability and environmental performances.
In addition to safety and environmental achievements, Maya II also was
noteworthy for the materials that were used; for example, 3,000 truckloads of
concrete, 3,800 tons of structural steel, 250,000 feet of pipe, and 750,000 feet
of electrical cable.
Looking ahead, Hake sees other opportunities on the horizon. “I am optimistic we will move from strength to strength,” he said.
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