Oil supermajor Royal Dutch Shell has agreed to sell its Martinez, California, refinery, 30 miles northeast of San Francisco, to independent refiner PBF Energy for up to $1 billion, the two companies announced Tuesday, Kallanish Energy reports.

The CEO for New Jersey-based PBF called the Contra Costa County facility, which has refining capacity of 160,000 barrels a day, the best refinery in the Bay Area. The refinery is the company’s sixth and brings its total refining capacity to more than 1 million barrels per day (Mmbpd)

“The Martinez acquisition is too compelling for us to pass up,” Tom Nimbley, the company’s chairman and CEO, said during a conference call with analysts Tuesday afternoon. “We are buying a world-class asset at a fair price and an opportune time.”

Shell said in a press release said it wants to “reshape efforts toward a smaller, smarter refining portfolio.”

“This deal is another step in our transformation,” said Shell Downstream director John Abbott.

Local workers employed at the Martinez site are expected to be offered jobs at PBF. Shell says it employs more than 700 people at the site.

PBF operates five refineries around the country, including one of its most recent purchases, a refinery in Torrance (Los Angeles County), California.

Both companies expect the sale of the refinery to close by the end of the year.

This post appeared first on Kallanish Energy News.