PARSIPPANY, N.J., Oct. 1 (UPI) -- Downstream-focused PBF Energy said it was setting up a subsidiary in part to handle the $537 million California refinery business acquired from Exxon Mobil.
PBF acquired the Torrance refinery in California from Exxon Mobil. A capacity of 155,000 barrels per day brings the total capacity for PBF, which has headquarters in New Jersey, to approximately 900,000 bpd.
"We are excited to be adding a refinery with Torrance's complexity and we look forward to entering the West Coast market," PBF Chief Executive Officer Tom Nimbley said in a statement.
The acquisition from Exxon includes associated infrastructure and pipelines in California. PBF said it was setting up a special subsidiary, PBF Energy Western Region LLC, to manage operations there through a newly minted team of executives.
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PBF in June spent $332 million on a grab for the 189,000-bpd Chalmette refinery in Louisiana, which at the time expanded the company's total refining capacity by 35 percent. Exxon held a stake in the Chalmette refinery.
Combined with the Torrance refinery, PBF increased its net refining capacity by 60 percent from last year, which Nimbley said translates to a "meaningful" bicoastal footprint.
For Exxon, the sale is part of what Jerry Wascom, president of the refinery arm of Exxon, said was strategic assessment of how the Torrance refinery fits in with the company's larger portfolio.
"ExxonMobil regularly adjusts its portfolio through investment, restructuring or divestment consistent with overall global and regional business strategies," he said in a statement.
The California Division of Occupational Safety and Health in early 2015 ruled Exxon skirted its responsibility as a refinery company by ignoring hazardous conditions at its Torrance refinery.
Four workers were treated for minor injuries and eight went through a decontamination process after a Feb. 18 blast at the 750-acre refinery in Torrance. Most of the damage was contained to the site during what was described as a small fire.
