News

European Oil Refineries Sold And Up For Sale

24.02.2010 -

Many European oil and chemical firms have been looking to sell domestic refineries since last year as demand for fuels and petrochemical products has fallen more sharply in Europe than in most other parts of the world, hitting profit margins. However, some have failed to find buyers.

Following are the refineries around Europe that have been sold or are up for sale:

Lindsey, UK
• French major Total is looking to sell the 221,000 barrels per day refinery. A potential buyer or the value of the plant has not been available.
• It is Britain's third largest refinery, which began operation in 1968. Employs about 500 people.
• A relatively simple refinery, with an undersized gasoline making catalytic cracking unit relative to its crude processing capacity.
Has high middle distillate yield.
• The plant can process 40 different types of crude oil, while North Sea crude accounts for 85-95% of its crude oil slate, according to the corporate website.
• Total invested $308.5 million in the HDS-3, or hydrodesulphurisation unit, to make ultra low sulphur diesel. The construction will be completed in spring 2010. Total has not said when it will come onstream.

Vlissingen, The Netherlands
• Russia's Lukoil bought a stake in the 153,000 bpd Vlissingen refinery in the Netherlands from French major Total in June last year, blocking a bid by U.S. refiner Valero
• Total will retain a 55% stake in the plant. Lukoil has acquired 45%, which was previously held by Dow Chemical.
•U.S. oil major ConocoPhillips owns 20% of Lukoil.
•Vlissingen is a moderately complex, diesel-oriented plant. It is equipped with a hydrocracker, which typically allows a refiner to process relatively heavier, cheaper crude oil such as Russian Urals.

Harburg, Heide, Germany
Stanlow, UK
Gothenburg, Sweden

• Royal Dutch Shell said about 560,000 bpd, or 15% of its global total refinery capacity was under review.
• Shell has been in talks with India's Essar Oil on the sale of the three refineries.
• Essar last year said the exclusive talks would last until the end of November but Shell said earlier in February they were still in talks.
• Essar has been in talks with UBS, Citigroup and JPMorgan for a loan of up to $750 million if it wins the bidding for the three refineries, sources said last year.
• Harburg has a capacity to process 5.2 million tons of crude oil a year (roughly 110,000 bpd). It is moderately complex and its key units are a catalytic cracker for gasoline making and lubricant systems.
• Heide can process 4.5 million tons a year (93,000 bpd). It is an integrated, petrochemical oriented plant.
• Stanlow has a capacity to process 267,000 bpd.
• Gothenburg has a capacity to process about 78,000 bpd.

Livorno, Italy
• Italy's Eni is no longer looking to sell Livorno.
• Last September it said it was in preliminary talks with UK private equity fund Klesch & Co to the refinery.
• Livorno is an 85,000 bpd simple refinery.

Antwerp, Belgium
Teesside, UK

• Swiss-based refiner Petroplus has agreed to sell the Antwerp bitumen plant to Vitol.
• Petroplus idled its 117,000 bpd Teesside plant in March last year. Initially it was seeking a buyer of the simple plant.
• Petroplus Chief Executive Thomas O'Malley sold his previous venture U.S. refiner Premcor Inc to Valero Energy Corp in 2005 and is now in talks with Valero via PBF Investments to buy its shuttered 210,000 bpd refinery in Delaware City, the U.S.

Grangemouth, UK
• Located in Scotland, the plant processes about 200,000 barrels of crude oil per day.
• Current operator British chemicals maker Ineos bought the plant from BP in 2005.
• Chinese oil firm PetroChina is in talks to invest in the Grangemouth refinery.
• Grangemouth is a moderately complex refinery equipped with both hydrocracking and catalytic cracking systems, giving it flexibility to produce gasoline and middle distillates, such as diesel, according to market demand.
• The plant is connected to the North Sea Forties pipeline, which delivers about 650,000-700,000 bpd of crude oil, roughly half of the UK's daily production.
• Morgan Stanley has a deal with Ineos for product marketing and some crude oil purchase.