Mergers & Acquisitions

Report: Phillips 66 nearing deal to sell Whitegate Refinery

Report: Phillips 66 nearing deal to sell Whitegate Refinery
Photo courtesy of Phillips 66.

Phillips 66 is in the final stages of selling its Whitegate Refinery, located in Cork, Ireland, the country’s only refinery, Reuters reported over the weekend. One of 14 refineries owned by the Houston, Texas, U.S.A.-based company, the 71,000-barrel-per-day (bpd) Whitegate refinery processes light, low-sulfur crude oil, sourced mostly from the North Sea and West Africa.

The Whitegate refinery produces primarily transportation and heating fuels such as gasoline, diesel and kerosene that are distributed mostly inland, with some exported to the U.K. and Europe. Specifically, the refinery has the capacity to produce about 15,000 bpd of gasoline and 30,000 bpd of distillate products.

The facility also produces feedstock for system refineries and international markets.

A report on the Irish Examiner website said ArcLight Capital, Irving Oil, UK-based PTFPlusOne and Valero Energy were among the potential bidders for the Whitegate refinery. Family-owned Canadian company Irving Oil was said to be the frontrunner.

Phillips 66 has attempted to sell the refinery since 2013, but poor refining margins and the limited strategic appeal of the plant have meant there has been scant interest.

It was unclear whether the potential buyers intended to keep the plant open or close it and use it for storage only, Reuters reported.

Phillips 66 employs 157 staff and around 150 contractors at the Whitegate refinery.

Phillips 66 is a diversified energy manufacturing and logistics company, with a portfolio of midstream, chemicals, refining, and marketing and specialties businesses. Phillips 66 had USD 48 billion of assets as of March 31, 2016.

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