PJSC Lukoil has reached an agreement for the sale of subsidiary ISAB SRL, which operates the 320,000-b/d Priolo refinery in Sicily’s eastern province of Syracuse (OGJ Online, Feb. 23, 2021).
As part of the Jan. 9 deal, Lukoil subsidiary Litasco SA will sell its 100% ownership interest in ISAB to G.O.I. Energy Ltd., an energy sector arm of Cyprus-based Argus Management Ltd.’s Argus New Energy Fund AIF V.C.I.C. Ltd., Lukoil said in a release.
G.O.I. Energy already has formed a partnership with global trading firm Trafigura Group Pte. Ltd. that will secure uninterrupted feedstock supplies to the refinery and provide for production offtake—as well as necessary working capital—to ensure operation of ISAB’s integrated complex following the acquisition, according to Lukoil.
While financial details of the planned divestment were not disclosed, Lukoil said the transaction is scheduled to be completed by end-March 2023 pending regulatory approvals.
Announcement of the proposed sale follows Lukoil’s notification to the market on Dec. 2, 2022, that—based on feedstock already in storage and ongoing deliveries of non-Russian oil—ISAB would be able to ensure uninterrupted operation of the Priolo refinery during the coming months despite restrictions on supply of Russian crude to countries of the European Union set to take effect on Dec. 5 (OGJ Online, Aug. 24, 2022).
Lukoil assumed ownership of the Priolo refinery—which consists of refining, gasification, and electricity cogeneration sites interconnected via a system of pipelines across three plants—from former joint-venture partner ERG SPA in late 2013.