Under the terms of the deal, PBF Energy will acquire 155,000 barrel-per-day Torrance refinery, a lubricants distribution center at Vernon, products terminals at Vernon and Atwood, and associated California pipelines and other logistics assets, including facilities at the Southwest terminal.
PBF expects the transaction to increase its total throughput capacity to approximately 900,000 barrels per day.
The decision to divest the refinery comes as a result of ExxonMobil’s ongoing assessment of strategic priorities.
ExxonMobil Refining & Supply Company president Jerry Wascom said: "The sale results from a strategic assessment of the site and how it fits with our refining portfolio.
"We will continue to make significant investments across the globe to strengthen our facilities which are often advantaged by scale and integration with chemicals and lubricant manufacturing."
The transaction, which is subject to customary closing conditions and regulatory approvals, is scheduled to be completed in the second quarter of 2016.
PBF CEO Tom Nimbley said: "The Torrance Refinery acquisition is another significant step in the continued growth of PBF Energy and PBF Logistics."
The acquisition follows a deal signed in June by PBF with Petróleos de Venezuela (PDVSA) and ExxonMobil to acquire 100% stake in their joint venture company, Chalmette Refining, for $322m.
Nimbley said: "Coupled with the previously announced Chalmette acquisition, we will have increased our refining capacity by over 60% added meaningful Gulf and West Coast assets to our refining system.
"Upon completion of these two pending transactions, we will have operations spanning four PADDs and have diversified and increased our commercial footprint and flexibility."
With Nelson Complexity Index of 14.9, the Torrance refinery is designed to produce 1.8 billion gallons of petrol annually, representing around 10% of total petrol refined in California.
Image: PBF expects the deal to increase its total throughput capacity to 900,000 barrels per day. Photo: courtesy of Victor Habbick/ FreeDigitalPhotos.net.
