CALGARY, Alberta & BRENTWOOD, Tenn., Aug 02, 2010 (BUSINESS WIRE) --
Shell Canada Products (Shell) and Delek US Holdings, Inc. (Delek US)
(NYSE: DK) today announced that they have agreed to end negotiations
regarding a potential sale of the Shell Montreal East refinery.
Shell and Delek US met last week in an effort to address outstanding
issues that both parties had been unable to resolve in negotiations held
earlier this year. Negotiations once again reached an impasse, leading
both parties to terminate discussions.
"Unfortunately, after considerable efforts to find common ground on a
number of complex issues, both sides have determined not to pursue
further negotiations with regard to the Montreal East Refinery," said
Uzi Yemin, President and Chief Executive Officer of Delek US Holdings.
"We thank Delek US for their interest in the Montreal East Refinery,"
said Richard Oblath, Vice President, Downstream Portfolio for Shell.
"This concludes a more than one-year process conducted by us to find a
buyer for the Montreal East refinery. During this time, more than 100
companies were contacted regarding the asset, none of whom saw an
acceptable future for the site as a refinery."
"Because no buyer for the refinery had been identified by the end of
last year, we announced on January 7, 2010 that we intended to convert
the refinery to a terminal and so started detailed planning for the
conversion," said Oblath. "Although we retained hope that a buyer could
be found, the conversion was planned in parallel to the sale process,
since there was no guarantee a sale would occur."
"We must now direct our attention toward converting the refinery into a
terminal in a way that is safe and ensures that there is an adequate
supply of fuel for our customers in Quebec, Atlantic Canada, and Eastern
Ontario. In this light we look forward to the completion of the
regulatory review so we can complete this activity as soon as possible,"
Both Shell and Delek US would like to thank the Special Committee,
Government members, union representatives, customers, and employees and
their families for their patience and understanding during this process.
Shell has been operating in Canada since 1911 and employs approximately
8,000 people across the country. A leading manufacturer, distributor and
marketer of refined petroleum products, Shell produces natural gas,
natural gas liquids and bitumen, and is Canada's largest producer of
sulphur. Shell is one of Canada's oil sands developers and operates the
Athabasca Oil Sands Projects on behalf of the joint venture partners.
Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam, and
New York stock exchanges. Shell companies have operations in more than
100 countries with businesses including oil and gas exploration and
production; production and marketing of Liquefied Natural Gas and Gas to
Liquids; manufacturing, marketing and shipping of oil products and
chemicals and renewable energy. For further information, visit www.shell.com.
Delek US Holdings, Inc. is a diversified energy business focused on
petroleum refining, marketing and supply of refined products, and retail
marketing of refined products and general merchandise. The refining
segment operates a high conversion, independent refinery, with a design
crude distillation capacity of 60,000 barrels per day, in Tyler, Texas.
The marketing and supply segment markets refined products through its
terminals in Abilene, Texas and San Angelo, Texas as well as other third
party terminals. The retail segment markets gasoline, diesel and other
refined petroleum products and convenience merchandise through a network
of company-operated retail fuel and convenience stores, operated under
the MAPCO Express(R), MAPCO Mart(R), East Coast(R),
Fast Food and Fuel(TM), Favorite Markets(R), Delta Express(R)
and Discount Food Mart(TM) brand names.
Cautionary Note - Royal Dutch Shell plc
The companies in which Royal Dutch Shell plc directly and indirectly
owns investments are separate entities. In this press release "Shell",
"Shell group" and "Royal Dutch Shell" are sometimes used for convenience
where references are made to Royal Dutch Shell plc and its subsidiaries
in general. Likewise, the words "we", "us" and "our" are also used to
refer to subsidiaries in general or to those who work for them. These
expressions are also used where no useful purpose is served by
identifying the particular company or companies. ''Subsidiaries'',
"Shell subsidiaries" and "Shell companies" as used in this press release
refer to companies in which Royal Dutch Shell either directly or
indirectly has control, by having either a majority of the voting rights
or the right to exercise a controlling influence.
The companies in which Shell has significant influence but not control
are referred to as "associated companies" or "associates" and companies
in which Shell has joint control are referred to as "jointly controlled
entities". In this press release, associates and jointly controlled
entities are also referred to as "equity-accounted investments". The
term "Shell interest" is used for convenience to indicate the direct
and/or indirect (for example, through our 34% shareholding in Woodside
Petroleum Ltd.) ownership interest held by Shell in a venture,
partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the
financial condition, results of operations and businesses of Royal Dutch
Shell. All statements other than statements of historical fact are, or
may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management's current expectations and assumptions and involve known and
unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied in these statements. Forward-looking statements include, among
other things, statements concerning the potential exposure of Royal
Dutch Shell to market risks and statements expressing management's
expectations, beliefs, estimates, forecasts, projections and
assumptions. These forward-looking statements are identified by their
use of terms and phrases such as ''anticipate'', ''believe'', ''could'',
''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'',
''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'',
''risks'', ''goals'', ''should'' and similar terms and phrases. There
are a number of factors that could affect the future operations of Royal
Dutch Shell and could cause those results to differ materially from
those expressed in the forward-looking statements included in this press
release, including (without limitation): (a) price fluctuations in crude
oil and natural gas; (b) changes in demand for the Shell's products; (c)
currency fluctuations; (d) drilling and production results; (e) reserve
estimates; (f) loss of market share and industry competition; (g)
environmental and physical risks; (h) risks associated with the
identification of suitable potential acquisition properties and targets,
and successful negotiation and completion of such transactions; (i) the
risk of doing business in developing countries and countries subject to
international sanctions; (j) legislative, fiscal and regulatory
developments including regulatory measures addressing climate change;
(k) economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities,
delays or advancements in the approval of projects and delays in the
reimbursement for shared costs; and (m) changes in trading conditions.
All forward-looking statements contained in this press release are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place undue
reliance on forward-looking statements. Additional factors that may
affect future results are contained in Royal Dutch Shell's 20-F for the
year ended December 31, 2009 (available at www.shell.com/investor
These factors also should be considered by the reader. Each
forward-looking statement speaks only as of the date of this press
release, August 2, 2010. Neither Royal Dutch Shell nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events
or other information. In light of these risks, results could differ
materially from those stated, implied or inferred from the
forward-looking statements contained in this press release.
The United States Securities and Exchange Commission (SEC) permits oil
and gas companies, in their filings with the SEC, to disclose only
proved reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. We may have used
certain terms in this press release that SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. Investors are
urged to consider closely the disclosure in our Form 20-F, File No
1-32575, available on the SEC website www.sec.gov.
You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
Safe Harbor Provisions Regarding Forward-Looking Statements - Delek
US Holdings, Inc.
This press release contains forward-looking statements that are based
upon current expectations and involve a number of risks and
uncertainties. Statements concerning our current estimates, expectations
and projections about our future results, performance, prospects and
opportunities and other statements, concerns, or matters that are not
historical facts are "forward-looking statements," as that term is
defined under the federal securities laws.
Investors are cautioned that the following important factors, among
others, may affect these forward-looking statements. These factors
include but are not limited to: the timing of our receipt of insurance
proceeds; our competitive position and the effects of competition; the
projected growth of the industry in which we operate; changes in the
scope, costs, and/or timing of capital projects; losses from derivative
instruments; management's ability to execute its strategy of growth
through acquisitions and transactional risks in acquisitions; general
economic and business conditions, particularly levels of spending
relating to travel and tourism or conditions affecting the southeastern
United States; risks and uncertainties with the respect to the
quantities and costs of crude oil, the costs to acquire feedstocks and
the price of the refined petroleum products we ultimately sell;
potential conflicts of interest between our majority stockholder and
other stockholders; and other risks contained in our filings with the
Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future
performance or results and will not be accurate indications of the times
at, or by which such performance or results will be achieved.
Forward-looking information is based on information available at the
time and/or management's good faith belief with respect to future
events, and is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in the statements. Delek US undertakes no obligation to update or revise
any such forward-looking statements.
SOURCE: Delek US Holdings, Inc.
Delek US Holdings, Inc.
Noel R. Ryan III
Director - Head of Investor Relations/Communications
Shell Canada Media Relations, 1-403-691-3198