HOUSTON (Reuters) – Chevron Corp has agreed to buy a Texas oil refinery with a troubled past and space to handle a coming flow of shale from its West Texas operations, two sources familiar with negotiations said on Monday.

The U.S. oil major is expected to disclose the deal to acquire a 112,000 barrel-per-day (bpd) refinery in Pasadena, Texas, this quarter, the sources said. The plant is operated by Pasadena Refining System Inc, a Texas-based unit of Brazil’s state-run oil firm Petroleo Brasileiro SA.

Chevron spokesman Braden Reddall declined to comment on Monday. Carlos Monteiro, a spokesman for Petrobras in Rio de Janeiro, said any communications on an agreement would be disclosed to the market.

A deeply indebted Petrobras put the plant on the market in early 2018 after sinking more than $1.18 billion into it since it acquired its first stake in the operation in 2006.

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