Phillips sells UK refining and marketing
14 Dec 2000
Phillips-Imperial Petroleum Limited (PIP) has been sold to Petroplus International NV.
Phillips Petroleum Company United Kingdom, a division of Phillips Petroleum Company, and Imperial Chemicals Industries (ICI) have agreed to sell their joint venture company, Phillips-Imperial Petroleum Limited (PIP) to Petroplus International NV. (Petroplus).
PIP operates a refinery at Teesside, UK, and markets its products through Phillips Petroleum Products Limited (PPP), a wholly owned Phillips subsidiary which also is being sold to Petroplus.
The refinery has a capacity of 117,000 barrels per day and is geared toward providing feedstocks for the petrochemical complex at Wilton, Teesside. It processes crude oil produced from the North Sea, including Phillips’ Ekofisk-area fields. The refinery is one of the largest producers of ultra-low sulfur diesel in Europe.
In addition to the company’s interest in the refinery, the sale includes PPP’s marketing and distribution business and related infrastructure in the United Kingdom. PPP markets mostly middle distillates and fuel oil produced at the Teesside refinery. The total value of the transaction is expected to be approximately US$110 million, of which Phillips will receive one half in cash.
Phillips employees affected by the sale will be offered positions with Petroplus. Phillips will maintain its office in Woking, England, to manage the European Division’s E&P operations.
