BP to sell Coryton, UK refinery

27 June 2006 11:45  [Source: ICIS news]

LONDON (ICIS news)--BP said on Tuesday it would sell its Coryton refinery in Essex, UK to focus on investments in the company’s other European sites.

The UK-based oil major said it was in the process of holding initial talks with a number of potential unnamed buyers and that more detailed discussions would start in the next couple of months.

The sale includes the Coryton distribution terminal, which is adjacent to the refinery, and BP’s UK bitumen business, which is integrated with Coryton.

Any potential buyer would be required to provide a long-term supply agreement and continuing use of the adjacent distribution terminal.

“This will also allow us to support and further develop our bio and differentiated fuels strategies in the UK,” said John Manzoni, chief executive of BP’s refining and marketing business.

“Coryton is a well placed and profitable refinery with excellent development potential which offers an attractive investment opportunity for potential buyers,” he added. “At the same time, the disposal will enable us to invest more deeply in our remaining European refineries so that they remain top class assets.”

A company spokeswoman said it was too early to speculate on a potential price for the Coryton refinery, as no comparative deals had taken place in the UK in the past few years. She added that the sale would not affect any of the company's other activities.  

At Coryton, BP produces petrol and diesel, including new cleaner fuels, aviation fuels, liquefied petroleum gas (LPG), fuel oils and bitumen.

BP closed down its lubricants section at the site, which produced around 7,000 barrels a day of base oils, methyl ether ketone (MEK), furfural, lubes, wax hi-fi and boiler 3 units, at the end of last year.

Apart from Coryton, BP owns and has shareholdings in eight European refineries, with its principle refining assets in Germany, Spain and the Netherlands.

By: Hilde Ovrebekk
+44 20 8652 3214

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