A subsidiary of Valero Energy has signed an agreement to sell its 185,000 barrel per day Paulsboro refinery in New Jersey to PBF Energy.

The net sale price is approximately $360m plus the value of net working capital and inventories, currently estimated to be $275m.

The transaction is expected to close in the fourth quarter and is contingent upon regulatory and other customary approvals.

Valero decided to explore its strategic options for the Paulsboro refinery in the third quarter of 2009 as part of its ongoing evaluation of its portfolio of assets.

Earlier this year, a PBF subsidiary purchased the terminaling operations and idle refining assets at Valero’s shutdown Delaware City refinery.

Valero is a manufacturer and marketer of transportation fuels, other petrochemical products and power.