Milford Haven refinery to close
6 Nov 2014
Murphy Oil (Murco) yesterday announced that a deal to save its Milford Haven refinery had collapsed, leaving the plant facing almost certain closure.
The US oil firm had planned to sell the former TotalFinaElf refinery and terminal in Pembrokeshire to Swiss firm Klesch Petroleum.
However, Murco said it had been unable to complete the sale by its deadline date of October 31st.
“The refinery is currently in a period of shut-down, and will be decommissioned and operated solely as a petroleum storage and distribution terminal,” said a Murco statement issued yesterday.
“The Company will seek a buyer for the terminal facility along with three inland terminals.”
This is a devastating blow to staff at the Murco refinery and companies within the refinery’s supply chain
Welsh economy minister Edwina Hart
The Welsh Government’s minister for Economy, Science and Transport, Edwina Hart, described the news as a “devastating blow”.
“This is a devastating blow to staff at the Murco refinery and companies within the refinery’s supply chain, as well as the local communities around Milford Haven,” said Hart.
“Murco has been integral to the fabric of the oil and gas infrastructure in Wales and the Welsh economy for many years. This news is especially disappointing as the Welsh Government did everything we could to support the success of this deal. We have been working with management at Murco since 2010 to try to maximise the opportunities for the sale of the refinery.
“In April I established a task force to marshal support from high level stakeholders for the maintenance of refinery operations at the site for the future. The work of this task force will carry on to maximise the opportunities for employment at the site.”
The 135,000 barrels per day Milford Haven refinery employs 400 workers, with all but 60 of them expected to lose their jobs.
Since 2007 14 refineries have closed across Europe, with another 12 expected to close in the coming years.
The dramatic fall in refining capacity has been blamed on high production costs in a declining market, combined with fierce price competition from refineries in the US, Middle East and Russia.
