KUWAIT CANSELS $1.4 BLN
Kuwait Petroleum International has cancelled a planned $1.4 billion investment in its 88,000 barrel per day (bpd) Rotterdam refinery and may sell it, a spokesman said, as Europe's refiners struggle with overcapacity and global competition.
"Now we have to look at all other options," spokesman Jan Maarten van der Steen said on Monday, adding that the company was talking to banks including HSBC about managing a possible sale.
Converting the Europoort refinery to a storage terminal or closing it entirely are possibilities, he said, although adding that closure was "not the option anyone wants".
"It's also our intention to keep all personnel on board," he said. "We are working on a new collective labour agreement."
Van der Steen said the company hoped to make a preliminary decision by spring 2015, though emphasising that talks were in early stages.
Industry sources said the refinery would have a hard time finding a buyer, given its small size and competitive position relative to much larger refineries in the Rotterdam oil hub and elsewhere in the region.
A union source said that converting the plant into a terminal would cut the staff to about 80 from around 350.
The refinery has been up for sale before, including an abortive 2007 deal in which Lukoil was the rumoured buyer.
The aborted investment, which the company had dubbed "Project Orange", would have added a 38,000 bpd hydrocracker, a new vacuum unit and several storage tanks.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.