An agreement for the sale of the Isab refinery in Priolo now there is. Litasco, 100% controlled by the Russian Lukoil announced in a press release that among the various suitors of the largest Italian refinery it was decided to start negotiations with Goi Energy, the energy arm of the private equity fund Argus with based in Cyprus and traction Israeli which manages "assets of more than 2 billion euros", reports a note.
The press release does not give figures, but according to some sources the transaction could be valid between 1,5 and 2 billion dollars, which should prevent the stop in production, which is worth a fifth of the national processing of petroleum products, in the hope that they will come employment levels were maintained
Il closing of the operation is expected by March and will however necessarily have to pass from the ok of the Italian government.
Priolo refinery: what's on the negotiating table
“We are delighted to have reached an agreement and are deeply aware of Isab's importance for the Italian economy, for Sicily and for the local community” commented l'CEO of Goi Energy Michael Bobrov. Bobrov is also the majority shareholder of Bazan Group, which in Israel "manages the largest integrated refining and petrochemical plant in the country", in the bay of Haifa, with 2.400 employees and a refining capacity of 9,8 million tons of crude oil. Bazan will be technology partner of Isab, to make it “a European energy hub”. “We firmly believe that Isab has important development potential and we have a solid track record business plan to be able to enhance it, in close collaboration with the government".
As proof of serious intentions there is also “thelong-term supply agreement” with Trafigura, which will ensure “a secure supply of oil and refined products to the refinery”. Trafigura, born in 1993 between Singapore and Geneva, is among the first global raw materials operators, with assets in 156 countries worth 2022 billion dollars in the 98 budget, and employees (Bobrov is a former) are the largest shareholders. “The acquisition of ISAB by GOI ENERGY, which constitutes one of the most important operations in the European energy sector, ensures the business continuity of the refinery, an issue of crucial importance for the Italian economy at a national level and for the local economy of Sicily. With a profound positive impact on the local community, the agreement safeguard jobs in the refinery and promotes the health and safety in the workplacethe note says.
The government's response: antitrust and golden power regulations will be followed. Unions: we await information
A month ago the hypothesis also emerged that the Italian government would activate the golden power in the event of a sale, so as to allow the plant to end up in hands favorable to Italy's political and international direction. “The purchase will have to follow the usual procedures inherent in antitrust and golden power regulations and therefore fully meet the requirements in terms of production, employment and respect for the environment which Mimit specifically highlighted to all the interlocutors who presented themselves in the negotiation" the minister of enterprises wrote in a note, Adolfo Urso, pointing out that “important will be the required commitments on the level of green conversion of the production site and its industrial relaunch".
“We look forward to knowing, as soon as the negotiations between the parties have been finalized and concluded, with the approval of the government, the hypotheses of the production and employment prospects of the site in question. It is good that the acquiring company Goi Energy will soon let us know in the ministerial office the industrial plan that will characterize the refinery", he comments Daniela Piras, general secretary of Uiltec.
Goi Energy wins over the other suitors
Goi Energy won over other contenders in the running for control of the plant which alone accounts for 20% of the country's refining capacity. For weeks there was talk of the interest of Fund Use Crossbridge. Then the entry into the scene was aired a new consortium presented to the government by a team of consultants which includes the former Prime Minister Massimo D'Alema, with the Qatari businessman at the centre Ghanim Bin Saad Al Saad, alongside Italian investors.
The Priolo refinery could, until the EU embargo was implemented on 5 December bypass the US embargo since the Russian oil that arrived in its plant was refined by effectively taking on the Italian colors and therefore could be exported to the United States. But December 5th marked the turning point that would have marked the blocking of the refinery (which has a thousand employees and related industries of about 10.000 people): the government intervened with decree law under the title "Urgent measures to protect the national interest in strategic productive sectors" which ordered the trusteeship, with which at least the channels of bank credit were kept open pending the sale of the plant.
The environmental impact will play an important role in the negotiation
La ecological transition implies heavy investments to reduce theenvironmental impact in Priolo: according to some sources in the sector, Lukoil's industrial plan estimated investing 6 billion for decarbonise the refinery in time. It does not appear that the government will pay the reclamations to the new buyers, therefore the extent of the transformation will be at their expense, and the pending authorizations will also depend on this, which GOI Energy expects to collect by March.
The buyer's consultants will work on it, Bonelli Heir Ernst & Young for the legal and financial aspects. For Ey, Massimo D'Alema coordinates a strategic advisory committee.
good, you're the only ones who didn't shoot the bullshit of Michael Bobrov CEO of Green Oil Energy Limited