EMEA News
LUKOIL Ups Stake in Sicily Refinery
Italian energy group ERG said Monday it has completed the sale of a 20% stake in its ISAB refinery in Sicily to Russia's LUKOIL in a deal worth €485 million ($611 million).
The transaction, which ERG said included inventory value, means LUKOIL now holds an equity interest of 80% in the refinery with ERG holding the remaining 20%.
The deal, which was announced in January 2012, came after ERG exercised its put option on the stake.
"This transaction allows ERG to downsize its presence in the refining business against a background of continuing crisis and to further consolidate the Group's financial structure with a view to supporting its future development projects during a difficult financial period," ERG's Chief Executive Officer Alessandro Garrone commented at the time.
ERG has a put option on their remaining 20% stake in ISAB and said in January 2012 the lock-up period for which was extended until October 1, 2013.
ERG has been reducing its stake in the business since 2008 when it sold a 49% stake in the refinery to LUKOIL.
The refinery is said to have a capacity of approximately 320,000 barrels per day.
Last month, LUKOIL gained ConocoPhillips' [NYSE:COP] 30% interest in the NaryanMarNefteGaz facility.
