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 integrateand rationalize its refinery in Augusta (Sicily) with theadjacent AGIP Petroli refinery at Priolo. When complete, this initiative will create a highly efficientrefining complex, combining a crude processing capacity ofapproximately 240,000 barrels per day with large-scale chemicals,lubricants and power generating capacity. The complex will rankamong the most efficient refineries in Western Europe. The agreement, which is subject to review by the ItalianAntitrust Authority, envisions the formation of a joint company(50/50) between AGIP Petroli and Esso Italiana. Under the termsof the agreement, the refinery will be operated in conjunctionwith chemicals, lubes and electricity production facilities whichwill retain their current ownership. The investments required to achieve this integration willamount to approximately US$110 million. Additional investmentsare currently under evaluation to meet future European fuelproduct specifications. The integration and related interconnections of these twoexisting sites are expected to be completed within two years.During this period the production cycle of the two sites willremain substantially unchanged. Esso Italiana and AGIP Petroli further announced the signingof a non- binding memorandum of understanding with Erg Petroli tosell to Erg the existing Priolo motor gasoline productionfacilities after Esso and AGIP have completed the refineryintegration process. This sale will be finalized after resolutionof remaining contractual issues, completion of due diligence andapproval by Italian antitrust authorities. Exxon affiliates have operated in Italy since 1891. Inaddition to Augusta, Esso Italiana is the operator and 75 percentowner of the 250,000 barrel per day Trecate refinery near Milanand has extensive retail and wholesale fuel, lube and chemicalsales operations. ots Original Text Service: Exxon CorporationInternet: http://www.newsaktuell.de Contact: Jill Johnson ofExxon Corporation, (USA) 972-444-1170 Web site:http://www.exxon.com
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