EUROPEAN GROUPS VYING FOR GERMAN REFINERY

Five European oil companies have formed a group to bid for the 100,000 b/d Leu na refinery near Leipzig in eastern Germany. The group, consisting of British Petroleum Co. plc, Austrian state oil company OMV, Total, Agip SpA and Den norske stats oljeselskap AS (Statoil), also is bidding to acquire Minol, which dominated downstream marketing in the former East Germany. Another group, consisting of Germany's Thyssen Handelsunion, Deutsche SB-Kauf, and Ste. Nationale Elf Aquitaine plans to bid

Dec. 16, 1991

2 min read

Five European oil companies have formed a group to bid for the 100,000 b/d Leu na refinery near Leipzig in eastern Germany.

The group, consisting of British Petroleum Co. plc, Austrian state oil company OMV, Total, Agip SpA and Den norske stats oljeselskap AS (Statoil), also is bidding to acquire Minol, which dominated downstream marketing in the former East Germany.

Another group, consisting of Germany's Thyssen Handelsunion, Deutsche SB-Kauf, and Ste. Nationale Elf Aquitaine plans to bid for the refining and marketing operations.

The German authorities are expected to formally invite bids for the assets early next year.

REFINERY DETAILS

Leuna is part of a large, integrated refining and petrochemical complex. The Germans are finding it difficult to interest local or international companies in the petrochemical units at the complex.

The refinery is supplied by an extension of the Friendship pipeline from the Soviet Union through Poland. The purchasers will have to find a new supply route, either from the Baltic Sea or North Sea or through an extension of a pipeline from the Mediterranean Sea.

The BP led group is looking at expanding overall capacity of Leuna to 160,000-180,000 b/d and undertaking much needed modernization and upgrading.

If the group is successful, Minol's 1,000 company owned stations would be divided among the partners.