Tosco, Irish government reach terms for sale of refinery, terminal
Tosco Corp., Old Greenwich, Conn., has agreed on terms to acquire the 71,250-b/d Whitegate refinery and a storage terminal in Ireland from the state-owned Irish National Petroleum Corp. for $100 million.
By the OGJ Online Staff
HOUSTON, May 29 -- Tosco Corp., Old Greenwich, Conn., has agreed to acquire a refinery and storage terminal in Ireland from the state-owned Irish National Petroleum Corp. for $100 million plus additional consideration for operating oil stocks.
The sale includes the acquisition of Irish Refining PLC and Bantry Terminals Ltd. and the business and certain other assets of INPC to Tosco on a debt-free basis. The deal was announced last year (OGJ Online, July 31, 2000). Tosco subsequently agreed to be acquired by Phillips Petroleum Co. later this year.
Tosco has agreed to operate the refinery and the terminal for at least 15 years and retain all existing INPC workers and their benefits.
The 71,250-b/d Whitegate, County Cork, refinery is the only one in Ireland.
Whiddy Island Oil Storage terminal is at Bantry Bay.
The Irish government, the sole owner of INPC, had sought a strategic partner to "underpin its core business." It selected Tosco, saying it would provide the best value to the existing shareholder, synergy with INPC's existing business, and upside potential and commitment to develop the facilities in the long term.
The acquisition does not include INPC subsidiary National Oil Reserves Agency, which manages oil stocks equal to 90 days' consumption.
The sale is subject to government approval and appropriate legislation being passed by parliament.
Upon completion of the deal, a government tax on petrol, diesel, and gasoil will no longer be provided to support refining operations.