Petroplus, Tamoil Are Among World Refiners to Shut Sites

Petroplus Holdings AG and Tamoil SA said they will close oil refineries in Europe next year, the latest in a series of plants around the world slated for sale, closure or conversion into storage terminals.

Tamoil, Libya’s overseas refiner, plans to convert its 95,000 barrel-a-day Cremona facility in Italy to a storage depot by the end of 2011, the company said on Nov. 12.

Petroplus, Europe’s largest independent refiner, plans to stop operating its 81,000 barrel-a-day Reichstett plant in France and convert the site into a terminal after failing to find a buyer, the Zug, Switzerland-based company said Oct. 21.

Refiners including Royal Dutch Shell Plc, ConocoPhillips, Chevron Corp. and Total SA are selling, closing or converting plants, particularly in Europe, as they seek to reduce overcapacity amid falling demand for oil-products and declining profit margins.

Profits from turning crude oil into fuels in northwest Europe fell to an estimated average of $2.59 a barrel in the third quarter, the lowest level since the fourth quarter of 2006, according to data by BP Plc.

European refineries available for sale can only be converted into oil storage when the plants are in locations suitable as trading hubs, Jack de Kreij, chief financial officer at Royal Vopak NV said on Nov. 12.

CLOSURES, CONVERSIONS, POTENTIAL SALES

The following table lists refineries around the world that have shut, are slated for permanent closure or conversion, and units idled for economic reasons. Capacity is shown in thousands of barrels of oil a day.

Company      Refinery         Status                 Capacity

EUROPE

Tamoil       Cremona          Plans to convert to    95
             Italy            a storage facility
                              at the end of 2011,
                              company said Nov. 12.

Conoco       Wilhelmshaven    Production won’t be    260
             Germany          resumed, CEO said Oct.
                              27. Plans remain for
                              sale or conversion.

Conoco       Humber           Will consider selling  221
             U.K.             at “right price,”
                              CEO said Oct. 27.

Petroplus    Reichstett       Conversion to terminal 85
             France           after failing to find
                              buyer, company said
                              Oct. 21.

PKN Orlen    Lietuva          Under review because   200
             Lithuania        of low profitability,
                              company said Aug. 15.

OMV          Arpechim         Shut in June on        70
             Romania          weak demand. Site
                              may be sold, OMV
                              said Aug. 4.

Murphy Oil   Milford Haven    Up for sale, company   130
             Wales            said July 22.
                              Transaction expected
                              in first quarter 2011.

Total        Lindsey          Petroplus makes        221
             U.K.             non-binding offer,
                              CEO said on April 22.

Total        Dunkirk          Conversion to          137
             France           terminal. Announced
                              in March 2010.

Chevron      Pembroke         Up for sale.           210
             U.K.             Announced in March
                              2010.

Petroplus    Teesside         Conversion to          117
             U.K.             terminal end-2009.

Total        Gonfreville      Crude unit shut in     173
             France           August 2009.

Shell        Stanlow          Up for sale.           233
             U.K.             Announced in August
                              2009.

Shell        Hamburg          Up for sale.           110
             Germany          Announced in March
                              2009.

NORTH/CENTRAL AMERICA

Valero       Aruba            Plans to start in      275
                              mid-December, company
                              said Oct. 26. Plant
                              shut in July 2009 on
                              poor economics. Under
                              review for possible
                              sale.

Western      Yorktown         Shutdown completed     71
             Virginia         Sept. 13. Plant may
                              be restarted if
                              margins improve.

Exxon        Chalmette        Some units will be     196
             Louisiana        stopped, company
                              said in August.

Murphy Oil   Meraux           Up for sale.           125
             Louisiana        Announced July 22.

Murphy Oil   Superior         Up for sale.           35
             Wisconsin        Announced July 22.

Chevron      Kapolei          Operations may be      54
             Hawaii           reduced, company
                              announced in March
                              2010.

Sunoco       Eagle Point      Shut on poor           150
             New Jersey       economics in
                              November 2009.
                              Possible conversion
                              to biofuels announced
                              in February 2010.

Big West     Bakersfield      Shut in January 2009   68
             California       after Big West went
                              bankrupt. Alon bought
                              the plant in February
                              2010 and plans to
                              process vacuum gasoil
                              into gasoline and
                              diesel by mid-2011.

Western      Bloomfield       Shut in late 2009 on   17
             New Mexico       poor economics.
                              Operates as a
                              terminal.

Valero       Corpus Christi   FCC shut on economics  20
             East, Texas      in March 2009.

Shell        Montreal         Conversion to          130
             Canada           terminal after
                              operations ceased in
                              Oct. 2010.

ASIA PACIFIC

Showa Shell  Keihin           Permanent closure      120
             Japan            of Ogimachi crude
                              unit in September
                              2011.

*JX Holdings Negishi          Permanent closure      70
             Japan            of a crude unit in
                              October 2010.

*JX Holdings Mizushima        Permanent closure      110
             Japan            of crude unit 2 in
                              June 2010.

*JX Holdings Oita             Permanent closure      24
             Japan            of crude unit 1 in
                              May 2010.

Nihonkai Oil Toyama           Conversion to          60
             Japan            terminal in March
                              2009.

CPC Corp.    Kaohsiung        FCC shut on            25
             Taiwan           economics in
                              February 2009.

*JX Holdings Inc. is the parent company of JX Nippon Oil &
Energy Corp., Japan’s largest refiner, and was formed in April
2010 after the merger of Nippon Oil Corp. and Nippon Mining
Holdings Inc.

THIS YEAR’S SALES

Here is a further list of refineries that have been sold this year. Some of the sites had previously been considered for possible closure or conversion. Capacity is shown in thousands of barrels of oil a day.

Company      Refinery         Status                 Capacity

Shell        Gothenburg       Agreed sale to St1     78
             Sweden           Oy of Finland on Oct.
                              27.

Marathon     St. Paul Park    TPG Capital agrees     74
             Minnesota        to buy plant on
                              Oct. 6.

Valero       Paulsboro        PBF Energy agrees to   166
             New Jersey       buy on Sept. 27 for
                              $360 million.

Shell        Heide            Agreed sale to         91
             Germany          U.K.’s Klesch & Co.
                              on Aug. 20.

Valero       Delaware City    Sold to PBF Energy     190
             Delaware         in April 2010.

Shell        Marsden Pt       Shell sells 17%        109
             New Zealand      share to Infratil
                              and government
                              pension fund in
                              March 2010.

*Ruhr Oel    Gelsenkirchen    Russia’s Rosneft       266
             Germany          buys PDVSA’s 50
                              percent stake in
                              Ruhr Oel.

*Ruhr Oel    Miro             Russia’s Rosneft       311
             Karlsruhe        buys PDVSA’s 50
             Germany          percent stake in
                              Ruhr Oel.

*Ruhr Oel    Bayernoil        Russia’s Rosneft       240
             Neustadt         buys PDVSA’s 50
             Vohburg          percent stake in
             Germany          Ruhr Oel.

*Ruhr Oel    PCK              Russia’s Rosneft       226
             Schwedt          buys PDVSA’s 50
             Germany          percent stake in
                              Ruhr Oel.

*Ruhr Oel, part owned by BP, has a 100 percent stake in the
Gelsenkirchen refinery and a 24 percent share in Miro’s
Karlsruhe plant. It also holds a 25 percent share in Bayernoil
and a 37.5 percent stake in the Schwedt facility. The sale was
announced on Oct. 15.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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