Lukoil to sell Sicilian plant to American Crossbridge
2022.12.08 14:58
Lukoil to sell Sicilian plant to American Crossbridge
Budrigannews.com – Three people with knowledge of the situation said on Thursday that the Russian group Lukoil and the U.S. private equity firm Crossbridge are close to a deal for the sale of the Russian group’s refinery in Sicily, Italy.
Two of the sources stated that the agreement between Crossbridge and Lukoil could be worth just under 1.5 billion euros ($1.58 billion), but they cautioned that the final terms of the transaction could still change. The agreement is supported by Swiss commodity trader Vitol.
In Sicily, the Lukoil-owned facility refines a fifth of Italy’s crude and directly employs approximately 1,000 people in a low-income region.
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After a European Union embargo went into effect on Monday, the refinery is now unable to take its primary feedstock. In recent months, the refinery has primarily relied on Russian crude.
Rome announced last week a plan to transfer control of the plant to trustees in order to safeguard domestic refinery capacity and jobs from the embargo.
One of the sources stated that the possibility of the refinery coming under trusteeship has accelerated negotiations between Crossbridge and Lukoil.
Due to higher prices for diesel and gasoline, the refinery’s revenues are anticipated to more than triple this year, surpassing 10 billion euros ($10.55 billion), according to a fourth source.
Any consent to sell the plant will be dependent upon government examination under the purported brilliant power guideline, which gives Rome the likelihood to hinder the exchange would it be advisable for it hurt positions or vital creation in the country.
Vitol and Crossbridge declined to comment. Lukoil did not immediately respond to requests for comment. A request for clarification was not answered by the Italian ministry of industry.
