Netoil Submits Revised Offer for Petroplus Refinery in France

Netoil Inc., a Dubai-based company, has submitted a revised offer for insolvent Petroplus Holdings AG’s Petit-Couronne refinery in Normandy, France, teaming up with BP Plc. (BP/)

“We didn’t have a supplier before, now, we have a letter of intent from BP to supply 120,000 barrels of crude a day to the refinery for a three-year period,” Roger Tamraz, Netoil’s chairman, said today in a telephone interview from Paris.

Netoil plans to use Hyundai Group to upgrade the refinery and six people from the South Korean company are at the plant to carry out a survey, Tamraz said.

Robert Wine, a BP spokesman based in London, declined to comment on the matter.

Netoil expects to pay 60 million euros ($77 million) for inventories on site and 100 million euros for liabilities, Tamraz said, without identifying his creditors.

The 154,000 barrel-a-day facility faced liquidation last month after bids from Netoil and Alafandi Petroleum Group were rejected. A local court is scheduled to meet later today to discuss the new offers, Laurent Patinier, an official for the CFDT union at the site, said by phone.

Arnaud Montebourg, the country’s industry minister, said yesterday on RTL radio more time was needed to examine Libyan interest in the refinery after being contacted by the nation’s sovereign wealth fund.

Yesterday, Petroplus said the court will either give a new date for a decision or extend the deadline for bids.

Petroplus filed for insolvency in January after lenders froze credit lines. The plant has been running since June under a so-called tolling deal with Royal Dutch Shell Plc (RDSA), and may shut later this month if a credible buyer or plan isn’t approved by the court, union officials have said.

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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