Trading giant Trafigura has signed a deal to buy major refinery and terminal operations in France.
The deal is being done by Rhone Energies, a consortium consisting of Trafigura and asset manager Entara.
Trafigura described the sales agreement as an “important milestone” in the acquisition process of the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals from Esso.
The signing follows the completion of an information and consultation procedure with employee representative organisations.
“This is a key step towards the transfer of ownership of the site which remains subject to the required regulatory approvals,” Trafigura added.
These approvals are expected by the end of October.
Rhone Energies said it plans to capitalise on the refinery’s existing workers and “strong” manufacturing performance.
Fos has a crude oil processing capacity of 140,000 barrels per day.
“We look forward to continuing our engagement with the operational management and the transition team, to ensure a smooth transition of operations,” said Entara chief executive Nicholas Myerson.
“Discussions with national and local stakeholders have been particularly constructive, and we remain committed to collaborating with all parties on operations and our future plans.”
Securing crude and product volumes
In April, Trafigura revealed that it had entered talks to buy the refinery as a way of securing crude and product business.
It said it would sign minimum 10-year exclusive deals to supply crude to the refinery and buy its oil products, involving its own and chartered-in dirty and clean tankers.
Entara will manage the plant.
Trafigura’s global head of oil, Ben Luckock, called the refinery an efficient, flexible, well-run operation strategically located on France’s Mediterranean coast.
“Oil and petroleum products will continue to play an important role in supporting growing global energy demand during the transition currently underway to a low-carbon economy,” he added.
The refinery’s 310 staff will be retained.
Rhone Energies intends to invest in the sustainability of the site to reduce its carbon intensity, while putting money into the further co-processing of biogenic feedstocks to produce renewable fuels.
