UpdateImperial Oil confirms Sarnia base oil exit

04 February 2010 21:02  [Source: ICIS news]

(adds updates throughout)

HOUSTON (ICIS news)--Imperial Oil confirmed on Thursday it would quit making base oils, process oils and wax at its Sarnia, Ontario, refinery in Canada in 2011.

“Following a comprehensive, strategic review, Imperial Oil has decided to discontinue making base oils, process oils and wax,” Imperial spokesman Jon Harding said. “The transition should take place by mid-2011.”

Imperial Oil is an affiliate of ExxonMobil and has capacity to produce 2,800 bbl/day of Group I base oils and 3,800 bbl/day of Group II base oils at its Sarnia facility. It also can produce 2,400 bbl/day at its Strathcona facility, also in Canada. The Strathcona facility will continue producing base oils.

The refiner said it is working in advance with its customers to ensure a smooth transition. It began sending out letters to customers on Wednesday.

The Sarnia plant will focus on full-time fuels manufacturing when it quits making base oils, process oils and waxes, the company said.

“This will improve long-term profitability of refinery operations and allow us to take advantage of opportunities to manufacture more fuel products such as ultra-low sulphur diesel oil,” Harding said.

Imperial Oil on Tuesday said that its fourth-quarter profit fell a worse-than-expected 19% as weak refining margins weighed on the bottom line. Net income was $534m (€384m) for the fourth quarter of 2009 compared with $660m for the fourth quarter of 2008.

($1 = €0.72)

For more on ExxonMobil visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect


By: Heather McGuire Doyle
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index