ConocoPhillips to purchase German refinery

Nov. 28, 2005
ConocoPhillips plans to buy a refinery in Wilhelmshaven, Germany, from Louis Dreyfus Energy Holdings Ltd. along with the UK's Louis Dreyfus Refining and Marketing Ltd. Terms were not disclosed.

By OGJ editors
HOUSTON, Nov. 28 -- ConocoPhillips plans to buy a refinery in Wilhelmshaven, Germany, from Louis Dreyfus Energy Holdings Ltd. along with the UK's Louis Dreyfus Refining and Marketing Ltd. Terms were not disclosed.

The refinery purchase includes the 275,000 b/d refinery, a marine terminal, rail and truck loading facilities, and a tank farm. The refining and marketing company provides commercial and administrative support to the refinery.

Subject to governmental approval and regulatory permits, closing is expected during the first half of 2006. The Wilhelmshaven refinery would increase ConocoPhillips' overall European refining capacity to 647,000 b/d, the company said.

Jim Nokes, ConocoPhillips executive vice-president for refining, marketing, supply, and transportation, said upgrades are planned to cut operating costs and to enable the refinery to process more crude slates, including Russian blends.

The anticipated deep conversion is subject to German approvals and permits.

ConocoPhillips expects to increase its planned 2006 capital expenditures by $1.4 billion to provide for the acquisition, the planned deep conversion project, and other miscellaneous capital improvements. The company will release its 2006 capital expenditure plans in mid-December.