The halt to production at the Priolo refinery is averted. The Lukoil-controlled plant will come under the control of Goi Energy, the energy sector arm of Argus, a Cyprus private equity and asset management fund.
As part of the transaction, Goi Energy has entered into exclusive long-term supply and offtake agreements with TRAFIGURA, one of the world‘s largest independent oil and petroleum products traders. The agreements will ensure a secure supply of oil to the refinery and a guaranteed supply of refined products, as well as support the refinery’s working capital needs.
Therefore, the stoppage of the plant which refines over 20% of the fuels used in Italy after the embargo on Russian oil triggered on 5 December was averted.
The acquisition of Isab, previously sold by Erg to Lukoil, by Goi Energy constitutes one of the most important operations in the European energy sector, but above all it ensures the operational continuity of the refinery, a crucial issue for the Italian economy at a national level and for the local economy of Sicily. In fact, the agreements envisage the safeguarding of all jobs.
The agreement, which is subject to the occurrence of certain conditions precedent relating, among other things, to obtaining the authorizations from all the competent authorities, including the Italian government, should be finalized by the end of March. .
«We are pleased to have reached an agreement and we are deeply aware of the importance of Isab for the Italian economy, for Sicily and for the local community» says Michael Bobrov, CEO of Goi Energy, who then adds: «We believe that Isab has significant development potential and we have a solid business plan to be able to exploit it. In close cooperation with the Italian Government, we are optimistic that the operation will be completed successfully”.