INEOS is Offered $1 Billion by PetroChina for a 50% Share in its European Refining Business
INEOS Refining’s strategic objectives, bringing a long term partner to the
business with a jointly agreed investment programme for Grangemouth
(
“This offer is an important step on the way to forming a strategic
partnership with PetroChina,” says
allows us to remain fully committed to our refining business as well as
presenting an opportunity to further develop our interests in
beyond.”
INEOS has significantly improved its financial position over the past
eighteen months and this transaction will have a further positive impact on
the group.
options for the group over the first half of 2011.”
Today PetroChina International (
offer to INEOS of
business. This business includes the refineries at Grangemouth in
and Lavera in France.
The partnership with PetroChina will comprise a trading joint venture and
a refining joint venture. A new Swiss company will be incorporated to hold
the INEOS investment. The two joint ventures will be operated independently
of the INEOS Group.
INEOS and PetroChina will now work towards forming the proposed joint
ventures in Q2 2011.
“This new partnership will secure investment and the long-term
sustainability of both sites in a highly competitive market and ensure we
continue to be
delighted to be progressing PetroChina as a long term strategic partner,”
said
This transaction will significantly enhance the Group’s financial
position. Group leverage was 4.3x EBITDA at the end of
expected to reduce to around 3.5x EBITDA following completion.
on the way to INEOS forming a joint venture with PetroChina. When completed
we will have a strategic partner with significant refining expertise that is
integrated upstream with very strong equity crude positions. This agreement
allows us to remain fully committed to our refining business and presents us
with an opportunity to further develop our technology business in
beyond.”
venture, we now intend to evaluate our future refinancing options for the
group over the first half of 2011.”
This deal will help create a true strategic partnership between the two
companies. It will improve the long-term sustainability of the INEOS
refineries, enhance security of supply for customers and secure jobs and
skills in both the UK and France
The proposed joint venture is consistent with PetroChina’s strategy of
building a broader business platform in
international energy company. The geographic location and production
capabilities of the INEOS refineries are very favourable as both refineries
are well located in terms of markets and access to raw materials and both
have a significant production bias towards diesel, which is the fastest
growing refined fuel in
The Grangemouth refinery is located on the Firth of Forth with direct
access to crude oil and gas from the North Sea. The Grangemouth refinery
processes around 210,000 barrels of crude oil per day and provides fuel to
The Lavera refinery processes 210,000 barrels of crude oil per day. It is
located on the coast of the Mediterranean crude oil trading basin, next to
the port of
supplies fuel by pipelines into France,
Both sites are integrated into INEOS’s downstream petrochemical
production and remain strategic to its long-term business.
Following this announcement, there will be a period of employee
consultation prior to the signing of a binding agreement, subject to the
approval of the relevant Government and regulatory bodies.
B-Roll and photography of Grangemouth and Lavera is available from
Mediazoo contacts below.
Note to editors
INEOS (http://www.ineos.com) is the world’s fourth largest chemicals
group and a leading manufacturer of petrochemicals, speciality chemicals and
oil products. As of the end of 2010 it operates 15 businesses and with a
production network spanning 61 manufacturing facilities in 13 countries, the
group produces more than 40 million tonnes of petrochemicals and 20 million
tonnes per annum of crude oil refined products (fuels) each year. INEOS
employs 15,000 people and annual sales of around
INEOS Refining (http://ineosrefining.com) is
crude oil refiner. With two particularly advantaged refineries, it processes
more than 420,000 barrels of crude oil per day, to produce in the region of
20 million tonnes of fuels per annum. Our refineries are strategically
located at Grangemouth Scotland and
integrated with co-sited petrochemical assets of the Company. Close proximity
to feedstocks and our customers are key elements of our strength. INEOS
Refining employs around 1000 people and has a turnover of around
PetroChina Company Limited (http://www.petrochina.com.cn) is the largest
oil and gas producer and distributor, in
companies in
world. PetroChina was established as a joint stock company with limited
liabilities by China National Petroleum Corporation on
With its headquarters in
and as of
Traded in
to issue stock in
company to reach a trillion dollar market capitalization. The company employs
around 540,000 people and has a turnover of around
For further press contact:
INEOS
Richard Longden: Tel: +44(0)7710-371998 or email:
richard.longden@ineos.com
Mark Killick: Tel: +44(0)20-7384-6980 or +44(0)7836-634449 or email:
mark@mediazoo.tv
Sion Taylor Tel: +44(0)20-7384-6980 or +44(0)7768-372714 or e-mail:
sion@mediazoo.tv
Andrew McLachlan Tel: +44(02)20-7384-6980 or +44(0)7931-377162 or email:
andrew@mediazoo.tv
Helen Morris Tel: +44(0)20-7384-6980 or +44(0)791-7646585 or e-mail:
helen@mediazoo.tv
SOURCE INEOS