A subsidiary of Royal Dutch Shell Plc agreed June 11 to sell its California oil refinery for up $1 billion.

U.S. refiner PBF Energy Inc. said in a release its subsidiary entered the agreement to purchase the 157,000 barrel-per-day (bbl/d) Martinez refinery and related logistics assets from Shell Oil Products US. Based on the timing of close, the upfront acquisition price will be between $900 million and $1 billion.

The Martinez refinery is a high-conversion, dual-coking facility located on an 860-acre site in the City of Martinez, 30 miles northeast of San Francisco. Shell has been trying to sell the asset for a least four years, according to a report by Reuters.

Terms of the deal require Shell to pay about $70 million for anticipated turnaround costs plus about $40 million in compensation for downtime if the deal does not close by first-quarter 2020, PBF said in a presentation.

PBF expects the deal to close in the second half of this year and be “significantly accretive” to its earnings and cash flow. With the acquisition, PBF’s total throughput capacity will increase to over 1 million bbl/d and its refining system will have a consolidated Nelson Complexity of 12.8.

In addition to refining assets, the transaction includes a number of high-quality onsite logistics assets including a deepwater marine facility, product distribution terminals and refinery crude and product storage facilities with roughly 8.8 million barrels of shell capacity.