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Basell set to buy Shell refinery in France

https://www.chemnet.com   Aug 03,2007 PRW.com
2 August 2007 - A programme by Royal Dutch Shell to sell some of its European oil refineries has given Basell the opportunity to make an offer for the oil group’s refinery at the Berre l'Etang petrochemical complex in France.

Basell has agreed to pay $700m for the refinery and associated infrastructure. The deal is subject to regulatory approvals, but is expected to close in early 2008.

Basell chief executive, Volker Trautz, said: “The refinery is of strategic importance to Basell because it provides a further backward integration of our activities at the Berre site, one of our core European sites. Its products play an important role in support of our Polyolefins Europe business and through the acquisition we will be able to simplify existing interfaces and operate even more effectively.”

Basell operates a steam cracker and produces PP and PE at the Berre complex and has a PE plant at nearby Fos sur Mer. Basell was sold by Shell and BASF to Access Industries in 2005 and its takeover of the refinery further tidies up ownership of the polymer supply chain at Berre.

In 2006, Basell acquired the remaining 50% interest in the steam cracker at Berre from Shell, its former partner in the cracker joint venture. Approximately 1,500 Shell employees at the Berre site will transfer to Basell following the refinery takeover.

In another announcement today, Shell said it would sell two other European refineries to Petroplus Holdings of Switzerland. In a letter of intent Petroplus has agreed to buy the Petit Couronne and Reichstett Vendenheim refineries in France for $475m.

Rob Routs, executive director oil products and chemicals at Royal Dutch Shell, said: “The deal [with Basell] is consistent with our strategy of ‘more upstream, profitable downstream’, where we aim to focus and simplify the portfolio of the downstream business to those areas that give us the best returns and allow us to use capital to invest in growth markets.”
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