Harvest Energy Trust to buy Newfoundland refinery

Harvest Energy Trust, Calgary, plans to acquire the 105,000 b/cd North Atlantic Refining Ltd. refinery and related businesses from Vitol Refining Group BV for $1.6 billion (Can.).

Aug. 28, 2006

By OGJ editors
HOUSTON, Aug. 28 -- Harvest Energy Trust, Calgary, plans to acquire the 105,000 b/cd North Atlantic Refining Ltd. refinery and related businesses from Vitol Refining Group BV for $1.6 billion (Can.).

Closing of the transaction is anticipated by mid-October, subject to regulatory and other approvals. North Atlantic is a medium-gravity, sour crude refinery in Come by Chance, Newf.

The acquisition also includes a marketing division in Newfoundland with 69 retail outlets, a residential and commercial home heating business, the supply of products to commercial and wholesale customers, and the bunkering of petroleum products.

Harvest said it is buying the refinery to create a more fully integrated operation, combining the downstream assets with the company's existing upstream assets. This transaction would position Harvest as the only integrated Canadian energy royalty trust.