Trafigura has entered into talks to buy Esso’s Fos-sur-Mer refinery in France as a way of securing crude and product business.
The giant Swiss charterer said exclusive negotiations are being carried out through Rhone Energies, its joint venture with Entara.
A deal could also include Esso’s Toulouse and Villette de Vienne terminals.
Any transaction is subject to a formal consultation procedure with employee representatives.
The purchase is nevertheless expected to be completed by the end of this year.
Fos has a crude oil processing capacity of 140,000 barrels per day.
Trafigura said it would sign minimum 10-year exclusive deals to supply crude oil to the refinery and buy its oil products, involving its own and chartered-in dirty and clean tankers.
“These agreements would ensure the refinery has a secure supply of on-demand feedstock at competitive costs and a reliable off-taker of refined products destined to the domestic market,” it said.
Rhone Energies was formed by Entara and Trafigura to combine the strengths of a proven refinery operator with a global market leader in energy and commodities.
Entara, which will manage Fos, was established by former executives of Crossbridge Energy with a record of managing and optimising refinery assets, including at the Fredericia refinery in Denmark.
‘Efficient’ operation
Entara chief executive Nicholas Myerson said: “We would be delighted to acquire and assume stewardship of Esso’s Fos-sur-Mer refinery operations and look forward to engaging with the operational management, employee representatives and government stakeholders over the coming weeks and months to confirm our commitment to the operation and our plans for the future.”
Trafigura’s global head of oil, Ben Luckock, called the plant an efficient, flexible, well-run operation strategically located on France’s Mediterranean coast.
“The refinery will continue to be an important contributor to energy security in the region and would benefit from Trafigura’s global trading and logistics network,” he said.
“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.”
The refinery’s 310 staff will be retained.
Rhone Energies also intends to invest in the sustainability of the site to reduce its carbon intensity footprint, while putting money into the further co-processing of biogenic feedstocks to produce renewable fuels.
