EXXONMOBIL has been in advanced talks with other shareholders to pave the way for its sale of a stake in Germany’s second-biggest refinery, which was halted after a court ruling earlier this year, sources said.
About a year ago, the US oil giant announced its plans to sell a 25 per cent stake in the Miro refinery to commodity trader Alcmene – an Austrian affiliate of trader and terminal operator Liwathon. However, the deal has yet to be concluded.
Shell, another shareholder in the refinery, received a legal ruling from Karlsruhe’s Higher Regional Court in July. It stated that ExxonMobil should have first sought approval from all of the refinery’s shareholders.
The oil company has been drawing up a compensation package with Shell, added the sources, who asked not to be named as the discussions are private. They noted that the parties are confident that they will reach an agreement shortly, which would close the share sale.
The world’s biggest oil companies have been pressured by environmental targets, and share a renewed focus on higher margin crude production. They have withdrawn from much of their downstream portfolio, with trading companies and private equity groups among the main buyers.
ExxonMobil has been negotiating a sale of a French refinery to a consortium, which includes Trafigura. Meanwhile, Shell is in the process of selling its Singapore refining and chemicals assets to a joint venture, which includes Glencore.
ExxonMobil, Shell Deutschland and Miro declined to comment. Liwathon did not respond to requests for comment.
Germany’s economy ministry also did not comment, but said the government will go after its usual obligation to ensure the compliance of antitrust law, security of supply, and foreign trade law.
The Miro refinery – whose shareholders include Shell, ExxonMobil, Phillips 66 and a local unit of Rosneft that has been under the control of the German government – processes around 15 million tonnes of crude oil annually, its company website showed. BLOOMBERG
