Shell agrees to sell three French refineries

Uchenna Izundu
International Editor

LONDON, Aug. 2 -- Royal Dutch Shell has signed deals to sell three French refineries with a combined capacity of more than 300,000 b/d to Basell Polyolefins, Hoofddorp, the Netherlands, and Petroplus Holdings AG, Zug, Switzerland.

The refineries are among Shell's smallest and oldest. Shell said earlier this year that it was carrying out a review of nonstrategic assets (OGJ Online, Jan. 15, 2007).

Basell has agreed to pay $700 million to Societe des Petroles Shell to buy the 80,000 b/d Berre-l'Etang refinery site complex and associated infrastructure in France. The deal should be completed in early 2008.

The refinery produces naphtha, LPG, fuels, bitumen, and heating oil. Basell has a steam cracker, a butadiene extraction unit, and polypropylene and polyethylene plants adjacent to the refinery and a polyethylene plant at nearby Fos sur Mer.

Petroplus Holdings has signed separate letters of intent with Shell International Petroleum Co. Ltd. to acquire the Petit Couronne and Reichstett Vendenheim refineries in France. Petroplus will pay $875 million, including working capital of $400 million.

The parties hope to reach agreement on a sale in 2008.

The 164,000-b/cd Petit Couronne refinery, 130 km northwest of Paris on the River Seine, produces 40% middle distillates and 20% gasoline. Its major units include crude and vacuum distillation, fluid catalytic cracking, visbreaking, hydrotreating, reforming, lubricant production, and bitumen production. It receives crude via a 70-km pipeline from the port at Le Havre. The crude slate is about 70% high-sulfur.

The 80,000-b/cd Reichstett Vendenheim refinery is in Alsace, France, near Strasbourg, about 5 km from the River Rhine. It produces 45% middle distillates and 20% gasoline. Major units are crude and vacuum distillation, fluid catalytic cracking, visbreaking, hydrotreating, reforming, and bitumen production. Crude arrives via a pipeline from Fos. The crude slate is about 45% high-sulfur.

Contact Uchenna Izundu at uchennai@pennwell.com.

Related Articles

Modeling determines solvent applicability in SAGD

02/02/2015

Solvents are used to increase production and reduce steam-to-oil ratio in steam-assisted gravity drainage

Kazakhstan advances refinery modernization program

01/19/2015 Kazakhstan's state-owned KazMunaiGas (KMG) has secured financing from the Development Bank of Kazakhstan JSC (DBK) for the continuing modernization...

BIS lists six condensate export considerations

01/12/2015 The US Bureau of Industry and Security listed six considerations it will use to help determine whether US-produced crude oil condensate is a petrol...

Start-up continues at Abreu e Lima refinery

01/12/2015 Petroleo Brasileiro SA (Petrobras) has initiated the start-up of furnaces in the atmospheric distillation unit at its Abreu e Lima refinery (Rnest)...

Moody's: Russian oil-tax change helps exporters

12/22/2014 A new adjustment to Russian oil and gas taxation will benefit oil companies that export most of their crude oil and high-grade oil products but hur...

Barton introduces bill to remove US crude export limits

12/22/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

Cost-benefit believability

12/08/2014 In anticipation of what might become the costliest federal regulation in US history, Congress should join the Supreme Court in reviewing the Enviro...

EPA poses tighter ground-level ozone pollution controls

12/08/2014 The US Environmental Protection Agency proposed reducing ground-level emissions limits to 65-70 ppb from its current level of 75 ppb. It also will ...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected