Rhône Energies, a consortium composed of Entara LLC and Trafigura Pte Ltd., is progressing with its deliberate acquisition of the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals in southern France from Esso.
All events have signed a gross sales settlement following the completion of the data and session process with worker consultant our bodies, Trafigura mentioned in a information launch. The monetary particulars of the transaction are confidential, the corporate added.
The settlement is a key step in the direction of the switch of possession of the location, which stays topic to the required regulatory approvals. Discussions with the related authorities are ongoing and the mandatory authorizations are anticipated by the top of October, Trafigura acknowledged.
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“We’re delighted to have finalized the gross sales settlement for the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals. We stay up for persevering with our engagement with the operational administration and the transition workforce, to make sure a clean transition of operations,” Entara CEO Nicholas Myerson mentioned. “Discussions with nationwide and native stakeholders have been notably constructive, and we stay dedicated to collaborating with all events on operations and our future plans”.
Trafigura introduced unique negotiations for the acquisition of the belongings in April. Underneath the phrases of the proposed acquisition, Trafigura would enter right into a minimal 10-year unique crude oil provide and product offtake settlement, together with possession of crude oil and product shares in tank. These agreements 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 would comply with proceed to produce Esso SAF within the area, in line with an earlier information launch.
“We’d be delighted to accumulate and assume stewardship of Esso’s Fos-sur-Mer refinery operations and stay up for participating 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,” Myerson mentioned in an earlier assertion. “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 positioned on France’s Mediterranean coast,” Ben Luckock, World Head of Oil for Trafigura, added. “The refinery will proceed to be an vital 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 vital function in supporting rising international vitality demand in the course of the transition at the moment underway to a low-carbon economic system”.
Rhône Energies was fashioned by Entara and Trafigura to mix the strengths of a confirmed refinery operator with a world market chief in vitality and commodities. Entara was established by former executives of Crossbridge Vitality who’ve a monitor file of managing and optimizing refinery belongings, together with on the Fredericia refinery in Denmark. Entara plans to handle the Fos-sur-Mer asset, overseeing operations, upkeep, asset integrity, business, well being, security and environmental efficiency, in line with Trafigura.
Rhône Energies intends to put money into the sustainability of the location to scale back its carbon depth footprint whereas additionally investing in progress initiatives enabling additional co-processing of biogenic feedstocks to supply renewable fuels. With a crude oil processing capability of 140 thousand barrels per day, Fos-sur-Mer advantages from direct entry to a significant port, aggressive working prices and the flexibility to course of a variety of crude oil feedstocks, the sooner assertion mentioned.
To contact the writer, e mail rocky.teodoro@rigzone.com
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