Eni sheds eastern European refining assets

Italy’s Eni SPA has signed several agreements to sell its refining and marketing assets in eastern European countries as a part of its strategy to reduce the company’s global refining capacity.

Eni agreed to sell its nearly 32.5% stake in Ceska Rafinerska AS (CRC), a refining company in Czech Republic, to Hungary’s MOL Group.

The transfer is subject to the preemption right on the part of Eni’s other partner in CRC, Unipetrol, according to a May 7 release from Eni.

Eni said it has also inked additional agreements to sell MOL Group its refining and marketing subsidiaries operating in Czech Republic, Slovakia, and Romania.

The final sale of these subsidiaries—which include Eni Ceska Republika, Eni Slovensko, and Eni Romania—remains contingent on prior approval by the respective antitrust authorities, the company said.

While Eni said it will remain active in the wholesale marketing of lubricants in all three countries, the sale of its Czech, Slovakian, and Romanian subsidiaries is part of the Italian company’s refining capacity reduction plan to increase profitability (OGJ Online, Feb. 18, 2014).

With the shedding of its share in CRC, Eni will decrease its overall refining capacity by 7%, the company said.

A series of capacity reductions in its Italian refining business over the last 3 years contributed a 13% reduction in the company’s global refining capacity in 2013, according to Eni.

Eni previously said it plans a further capacity reduction of 22% in the next 3 years, which would reduce the company’s total refining capacity by more than one-third since 2012 (OGJ Online, Feb. 18, 2014).

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

HOW INDEXES HAVE RISEN

01/01/1990 Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December ...

OGJ NEWSLETTER

01/01/1990 Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses t...

DOE PRESSES CLEAN COAL PROGRAM

01/01/1990 The U.S. Department of Energy has chosen 13 more clean coal technology (CCT) projects in its third round of competition. If private sponsors and DO...

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