Sonatrach Signs an Agreement with Esso Italiana (Exxonmobil Group) for the Acquisition of the Augusta Refinery and Three Oil Terminals

Source Press Release
Company SonatrachExxonMobil 
Tags Asset Deals, Deals, Refinery Project, Refining & Marketing Activities
Date May 09, 2018

Following the agreement of the Algerian authorities and its Board of Directors, SONATRACH announced today that it has signed an agreement with ESSO Italiana Srl (a wholly-owned subsidiary of  Exxon Mobil ) on the purchase of the Augusta refinery (Sicily) from three oil terminals located in Augusta, Naples and Palermo and their associated oil pipelines. This agreement is the result of a competitive sales procedure.

The transfer of the property from the refinery and its assets to SONATRACH will take place at the end of 2018, subject to compliance with certain conditions, including the approval of this sale by the authorities in charge of competition.

Capable of processing both Sahara Blend and residual fuel from Skikda, the Augusta refinery will be integrated directly into SONATRACH's refining system.

It will also be able to deal directly with products that are surplus in Algeria in order to re-import products that are currently in deficit, such as gas oil and gasoline.Under the terms of this agreement, SONATRACH will also work closely with Esso Italiana Srl and  Exxon Mobil to ensure the effective continuity of the operation of the Augusta refinery during the transition period and its outcome.

With the acquisitionWith the acquisition of the three terminals, the autonomy of diesel and gasoline consumption in Algeria is, in turn, increased by several days of consumption. On the occasion of signing this agreement, Mr. Abdelmoumen OULD KADDOUR, Chief Executive Officer of SONATRACH , said:

"We are extremely proud to make our first investment in international refining in Italy. The geographical proximity of Italy and the privileged relations that have always linked SONATRACH to this country make it natural that our first acquisition"We are extremely proud to make our first investment in international refining in Italy. The geographical proximity of Italy and the privileged relations that have always linked  SONATRACH to this country make it natural that our first acquisition in refining should be in Italy. The Augusta refinery represents an ideal asset geographically and in terms of potential synergies with the Skikda refinery.

We intend to ensure the continuity of its management, the stability of employment and continue to advance its already high standards in terms of health, safety and respect for the environment. SONATRACH also intends to establish and foster an open and permanent dialogue with all stakeholders in this operation. "

Source: EvaluateEnergy® ©2018 EvaluateEnergy Ltd