Phillips 66 to sell Ireland's sole refinery

Phillips 66 announced on June 11 that it is going to sell Ireland’s only refinery, dealing another blow to Europe’s ailing oil refining industry.
An analyst said it was likely the 71,000 barrel per day Whitegate facility in Cork would have to close as it will be hard to find buyers for it.
“The odds of a buyer emerging look slim,” said Seth Kleinman, head of energy research at Citigroup.
“Phillips 66 intends to continue operating the assets as usual during the marketing process, which is expected to last for several months,” company spokesman Rich Johnson said in a statement.
Other assets on sale include an oil and refined products storage terminal in Bantry Bay and its wholesale marketing business, the company said.
Europe’s refining sector has been struggling because of overcapacity.
The Coryton refinery in the U.K., owned by the bankrupt Petroplus group, closed in 2012 after administrators failed to find a buyer for it. Creditors of Petroplus’ U.K. operations were paid a maximum of 6.4% of their claims.
Kleinman said a closure of the Whitegate refinery would lead to worries about fuel supply security for Ireland. “Whitegate supplies about one-third of Ireland’s oil products, so it would leave a big hole to fill and has to raise questions about fuel security for the country.”
In Dublin, Michael Martin, the leader of Ireland’s main opposition party Fianna Fail, said the sale of Ireland’s only oil refinery had potentially serious consequences for its economy.
“Whitegate is a key strategic asset. It provides one-third of all our transportation fuel and is a long-term principal supplier to the National Oil Reserves Agency.” Martin said in a statement.
He said Whitegate has operated in east Cork for nearly 55 years. “It has been a major employer in the area for decades, supporting hundreds of jobs directly and indirectly. Its loss would be a serious blow to local economy.”
(June 11, 2013)