Lukoil takes control of Sicilian refinery

OAO Lukoil said it has finalized a deal to purchase the remaining 20% share in its joint venture with Italian refiner ERG SPA to become the sole owner of the Isab refining complex at Priolo, Sicily.

OAO Lukoil said it has finalized a deal to purchase the remaining 20% share in its joint venture with Italian refiner ERG SPA to become the sole owner of the Isab refining complex at Priolo, Sicily.

The transaction is valued at €400 million, net of the working capital adjustment, Lukoil said.

The agreement to establish the joint venture to operate the Isab complex was signed in 2008, at which time Lukoil owned 49% and ERG 51% (OGJ Online, June 27, 2008).

In 2011, Lukoil raised its stake in the joint venture to 60% and in 2012, to 80%, according to Lukoil.

The Isab complex includes two refineries connected by a pipeline system and integrated into a single engineering complex with a total capacity of 16 million tonnes/year.

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