Exxon and AGIP to Integrate Two Italian Refineries
20.10.1999, 19:53
Irving, Texas (PROTEXT) - Esso Italiana, an Exxon Corporation
(NYSE: XON) affiliate, today announced an agreement to integrate
and rationalize its refinery in Augusta (Sicily) with the
adjacent AGIP Petroli refinery at Priolo.
When complete, this initiative will create a highly efficient
refining complex, combining a crude processing capacity of
approximately 240,000 barrels per day with large-scale chemicals,
lubricants and power generating capacity. The complex will rank
among the most efficient refineries in Western Europe.
The agreement, which is subject to review by the Italian
Antitrust Authority, envisions the formation of a joint company
(50/50) between AGIP Petroli and Esso Italiana. Under the terms
of the agreement, the refinery will be operated in conjunction
with chemicals, lubes and electricity production facilities which
will retain their current ownership.
The investments required to achieve this integration will
amount to approximately US$110 million. Additional investments
are currently under evaluation to meet future European fuel
product specifications.
The integration and related interconnections of these two
existing sites are expected to be completed within two years.
During this period the production cycle of the two sites will
remain substantially unchanged.
Esso Italiana and AGIP Petroli further announced the signing
of a non- binding memorandum of understanding with Erg Petroli to
sell to Erg the existing Priolo motor gasoline production
facilities after Esso and AGIP have completed the refinery
integration process. This sale will be finalized after resolution
of remaining contractual issues, completion of due diligence and
approval by Italian antitrust authorities.
Exxon affiliates have operated in Italy since 1891. In
addition to Augusta, Esso Italiana is the operator and 75 percent
owner of the 250,000 barrel per day Trecate refinery near Milan
and has extensive retail and wholesale fuel, lube and chemical
sales operations. ots Original Text Service: Exxon Corporation
Internet: http://www.newsaktuell.de Contact: Jill Johnson of
Exxon Corporation, (USA) 972-444-1170 Web site:
http://www.exxon.com
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