PBF Energy's newest refining addition needed focus more than hardware upgrades, chief executive Tom Nimbley said today on a quarterly earnings call.
The 155,000 b/d Torrance, California, refinery PBF took over from ExxonMobil this month had stellar hardware but operated under a "black cloud," Nimbley said, as ExxonMobil looked to leave the California refining business. Employees were demoralized working on a facility damaged by an explosion in February 2015 and "seeing their colleagues on the nightly news getting blasted because they're poor performers," he said.
"The hardware is unbelievably good," Nimbley said. "It's all about changing the culture to be a merchant refinery, to understand this is a core asset for PBF. It wasn't a core asset for Exxon. This is our Baytown."
The 557,000 b/d Baytown, Texas, refinery is ExxonMobil's largest. ExxonMobil declined to comment on Nimbley's assessment.
The refinery struggled to restart in the months leading up to purchase closing on 1 July, and stumbled again when a software upgrade caused units to shut down on 11 July.
But Torrance operated above historic rates in the first four weeks that PBF took over the facility, Nimbley said. The refiner was moving 70,000 b/d to 75,000 b/d of gasoline across company-owned fuel racks.
PBF plans to run an 80pc heavy and 8pc medium crude slate at the refinery, fed mostly by pipeline delivered California crudes but supplemented by waterborne imports. The refiner targeted yields of 70pc gasoline and 20pc distillates, almost all of which would be jet fuel or marine diesel not generating compliance obligations under US biofuel mandates.
David Campbell, secretary-treasurer for the United Steelworks Local 675 representing the refinery, said there is a clear cultural difference between PBF and ExxonMobil.
PBF appeared ready to address maintenance issues more quickly, he said. ExxonMobil tended to operate from the top down and give managers little sway, he said.
"Whereas PBF is, pardon the pun, a much more nimble company," Campbell said.
