Cargo of oil to keep Petroplus refinery running

London – Administrators for Petroplus Refining & Marketing Ltd (PRML) have acquired a cargo of oil to be processed at the Coryton refinery.

This purchase allows refining to continue as efforts to find a “more stable solution” for PRML continue, said PricewaterhouseCoopers (PwC).

Steven Pearson and Stephen Oldfield, partners with PwC, were appointed on 24 Jan, and have continued refining operations at the plant since their appointment.

The PwC partners are in ongoing talks with a number of parties who have expressed an interest in the refinery. The purchase, they said, provides more time to allow those discussions to be assessed by all parties.

“It has required extensive discussions and intense negotiations to acquire this cargo of oil. It provides vital breathing space,” said Pearson. “We continue to work through the day and night to find a solution which buys more time and which ultimately could result in a sale.

The refinery has the capacity to process 172,000 barrels of crude a day and 70,000 barrels per day (bpd) of other feedstock, according to a Bloomberg report – citing figures from the UK Petroleum Industry Association. The plant, it added, has been running at 100,000 bpd after lenders froze about $1 billion in credit to Petroplus late last year.

At PwC, Pearson went on to highlight the need for continuing support from the management, employees and unions to ensure the continued operation of the Coryton refinery.

“The costs of operating the site are very significant and this means we are living from hand to mouth,” said Pearson. “We cannot guarantee anything at this stage, but at least with have extended the period which the site can operate for by a number of days. This extra time is critical in maximising our options.”