Algeria’s state energy firm Sonatrach has signed an agreement with Esso Italiana Srl, a subsidiary of Exxon Mobil, for the purchase of the Augusta refinery in Sicily, three oil terminals in Augusta, Naples and Palermo and their associated pipelines.
The transfer of the property of the refinery and its assets to Sonatrach will take place at the end of 2018, subject to compliance with certain conditions, in particular the approval of this sale by the authorities in charge of competition.
Capable of processing both Sahara Blend and residual fuel from Skikda, the Augusta refinery will integrate directly into the refining system of Sonatrach. It may also deal directly with products that are surpluses in Algeria to re-import products that are currently in deficit like gas oil and gasoline.
Abdelmoumen Ould Kaddour, Chairman and Chief Executive Officer of Sonatrach, said: “We are extremely proud to make our first investment in international refining in Italy. The geographical proximity of Italy and the privileged relationships that have always linked Sonatrach to this country make natural that our first acquisition in refining be in Italy. The Augusta refinery is an ideal asset [for it’s] geographical location and in terms of possible synergies with the refinery Skikda. We intend to ensure the continuity of its management, the stability employment and continue to advance its already high standards in health, safety and respect for the environment. Sonatrach also intends to establish and nurture open dialogue and with all stakeholders in this operation.”
For more information, visit: www.sonatrach.dz