Rhône Energies, a consortium comprising commodity trader Trafigura and Entara, has entered into an agreement with ExxonMobil’s ESSO SAF to acquire the Fos-sur-Mer refinery in France.
The transaction, the financial terms of which were not disclosed, also includes terminals in Toulouse and Villette-de-Vienne.
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The refinery, with a processing capacity of 140,000bpd, has direct access to a major port and the capability to handle a diverse range of crude oil feedstocks.
With the deal, Rhône Energies aims to leverage the refinery’s workforce and manufacturing performance to enhance margin capture, crude flexibility and process utilisation.
Rhône Energies plans to retain approximately 310 staff members.
As part of the acquisition terms set out in April, Trafigura will enter a minimum ten-year exclusive agreement for crude oil supply and product offtake with Rhône Energies.
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By GlobalDataThis arrangement includes ownership of crude oil and product stocks, guaranteeing the refinery a secure and cost-effective feedstock supply, as well as a reliable outlet for its refined products in the domestic market.
In addition to the supply chain agreements, Rhône Energies has pledged to continue providing Esso SAF with products in the region.
The company also plans investments in the refinery to reduce its carbon footprint and to support the co-processing of biogenic feedstocks, thereby increasing the production of renewable fuels.
Entara, part of the Rhône Energies consortium and established by former Crossbridge Energy executives, will manage the Fos-sur-Mer asset.
This includes overseeing operations, maintenance, asset integrity and performance in commercial, health, safety and environmental areas.
Entara CEO Nicholas Myerson said: “We are delighted to have finalised the sales agreement for the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals.
“We look forward to continuing our engagement with the operational management and the transition team to ensure a smooth transition of operations. Discussions with national and local stakeholders have been particularly constructive, and we remain committed to collaborating with all parties on operations and our future plans.”
The sale agreement follows a consultation process with employee representatives.
Discussions with relevant authorities are in progress, with the necessary approvals expected by the end of October 2024.
