Esso SAF, ExxonMobil’s French affiliate, is in talks with Rhône Energies for the sale of the sale of its refining and logistics companies within the south of France, together with the Fos-sur-Mer refinery and the Toulouse and Villette de Vienne terminals.
Rhone Energies is a consortium of Entara LLC and Trafigura Pte Ltd.
The Esso Fos-Sur-Mer refinery was commissioned in 1965 and has undergone a number of reconfigurations throughout its historical past. The refinery has a crude oil processing capability of seven million metric tons per yr, Esso mentioned in a information launch. Fos-sur-Mer advantages from direct entry to a serious port, aggressive working prices and the flexibility to course of a variety of crude oil feedstocks.
- Advertisement -
Underneath the phrases of the proposed acquisition, Trafigura would enter right into a minimal 10-year unique crude oil provide and product off-take settlement, together with possession of crude oil and product shares. The settlement would make sure the refinery has a safe provide of on-demand feedstock at aggressive prices and a dependable off-taker of refined merchandise destined for the home market, Rhône Energies mentioned in a separate assertion.
The proposed acquisition is topic to a proper info and session process with worker consultant our bodies, Rhone Energies mentioned. The transaction completion, anticipated by the top of the yr, is topic to regulatory approvals. The monetary particulars weren’t disclosed.
Rhône Energies mentioned it plans to spend money on the sustainability of the location to cut back its carbon depth footprint whereas additionally investing in progress tasks enabling additional co-processing of biogenic feedstocks to supply renewable fuels.
Esso Chairman and CEO Charles Amyot mentioned, “This divestment challenge demonstrates the know-how and abilities of the groups working the Fos refinery and related depots. It’s a part of Esso’s long-term technique in France aimed toward sustaining the competitiveness of its operations, whereas guaranteeing continuity of provide to its prospects within the south of France. We’re satisfied that below the management of Rhône Energies and due to its assist, the groups will proceed to work tirelessly to produce the vitality merchandise wanted in the marketplace whereas persevering with the location’s dedication to the vitality transition”.
Entara CEO Nicholas Myerson mentioned, “We might be delighted to accumulate and assume stewardship of the Esso’s Fos-sur-Mer refinery operations and stay up for partaking with the operational administration, worker representatives and authorities stakeholders over the approaching weeks and months to verify our dedication to the operation and our plans for the longer term. We’re dedicated to upholding the operation’s excessive requirements of environmental accountability, security, and operational excellence”.
“The Fos-sur-Mer refinery is an environment friendly, versatile, well-run operation strategically situated on France’s Mediterranean coast,” Ben Luckock, International Head of Oil for Trafigura, mentioned. “The refinery will proceed to be an essential contributor to vitality safety within the area and would profit from Trafigura’s international buying and selling and logistics community. Oil and petroleum merchandise will proceed to play an essential function in supporting rising international vitality demand throughout the transition presently underway to a low-carbon economic system”.
Rhône Energies was shaped by Entara and Trafigura to mix the strengths of a confirmed refinery operator with a world market chief in vitality and commodities, it mentioned. Entara will handle the Fos-sur-Mer asset, overseeing operations, upkeep, asset integrity, industrial, well being, security and environmental efficiency.
To contact the creator, e mail rocky.teodoro@rigzone.com
