Group 1 - Phillips 66 (PSX) is considering producing CARB gasoline at its Ferndale refinery to improve air quality and increase gasoline supplies in California [1][2] - The Ferndale refinery has a capacity of 105,000 barrels per day (bpd) and will begin producing CARB gasoline for delivery to northern and southern California following the closure of the Los Angeles refinery, which has a capacity of 139,000 bpd [2][3] - The company is collaborating with California Governor Gavin Newsom and regulatory authorities to maintain fuel supply in the state after the Los Angeles refinery shutdown [3] Group 2 - Valero Energy plans to shut down or restructure its Benicia refinery in California by April 2026, which may lead to reduced refining capacity and higher gas prices in the state [4] - The refinery closures are primarily due to regulatory policies aimed at achieving cleaner energy targets and reducing emissions [4]

Core Viewpoint - Exxon Mobil Corporation (XOM) is entering exclusive negotiations to divest its controlling interest in Esso Société Anonyme Française SA and 100% of ExxonMobil Chemical France SAS to North Atlantic France SAS, with the transaction expected to close in Q4 2025, pending regulatory approvals and financial arrangements [1] Group 1: Transaction Details - The deal includes the Gravenchon refinery and related assets [1] - Approximately 1,350 employees affected by the transaction will remain employed under their current terms and conditions, ensuring workforce stability during the transition [4] - The divestment aligns with ExxonMobil's strategy to optimize its global portfolio while maintaining safe operations and meeting supply obligations during the transition [6] Group 2: Retained Operations - ExxonMobil will retain a significant commercial presence in France, operating around 750 Esso-branded retail fuel stations and continuing to supply finished lubricants, base stocks, and specialty products [2][3] - The company considers France a key market and intends to support its customers through the Esso brand [3] Group 3: Strategic Implications - North Atlantic views the acquisition as a strategic enhancement of its transatlantic operations, aiming to establish Gravenchon as a central hub for France's energy and industrial sectors [5] - ExxonMobil's exit from certain French operations does not indicate a broader retreat from Europe, as the continent remains important for its energy and specialty product business [7]