19 December 2013 10:48 [Source: ICIS news]
LONDON (ICIS)--Austria's OMV has reached an agreement to sell its 45% stake in the German Bayernoil refining network to Varo Energy, the oil, gas and petrochemicals group said on Thursday.
No transaction price was disclosed for the deal which, in addition to the refining network stake, includes related inventory, a bitumen plant and the wholesale business related to Bayernoil, OMV added.
Varo Energy is a joint venture between Dutch commodity trader Vitol Group and the Carlyle Group, a US asset management firm.
OMV said it selected its Bayernoil holding for a potential divestment because it does not have an integrated petrochemical operation. The company’s 10-year strategy to 2021 states that the refining business should be focused on refineries with petrochemical units.
“This transaction [also] marks a milestone in realising our strategy in shifting low-return downstream assets towards high-return upstream assets,” said OMV CEO Gerhard Roiss.
The sale would enable OMV to finalise its planned reduction in its refining capacity by 4.6m tonnes/year to 17.4m tonnes/year, the company added.
Bayernoil boasts the largest refining network in the Bavarian region.
OMV’s remaining refining assets are Schwechat in Austria, Burghausen in southern Germany, and Petrobrazi in Romania.
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