18 January 2013 14:26 [Source: ICIS news]
LONDON (ICIS)--OMV has agreed to sell its oil storage subsidiary to oil storage firm Erdollagergesellschaft (ELG), the Austrian energy and petrochemicals major said on Friday.
OMV did not disclose for how much it sold the business, known as Lagermanagementgesellschaft (LMG), but it said that it expects to record one-off earnings before interest and tax (EBIT) of €440m ($587m) on closing the deal later in the first quarter.
With the sale, ELG will assume LMG’s legal oil stock holding obligations. Austrian law obliges OMV - as an importer of oil and oil products – to ensure availability of 25% of its annual imports as compulsory emergency stock in case of a crisis.
The sale would make OMV’s refining and marketing business more comparable to its peers, who, for the most part, either do not have a similar stockholding obligation or have already outsourced the stockholding, OMV said.
LMG currently holds strategic reserves of about 1m tonnes of “crude oil units”, a legal term under Austrian emergency oil storage legislation that refers to crude oil or equivalent amounts of refined products.
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