Gunvor Group Ltd., Geneva, has completed a deal to take 100% ownership of Kuwait Petroleum International Ltd.’s (KPI) 88,000-b/d refinery and supporting product distribution network in Rotterdam, the Netherlands.
With the purchase now completed, KPI subsidiary and refinery operator Kuwait Petroleum Europoort BV will be renamed Gunvor Petroleum Rotterdam BV and integrated into Gunvor’s existing European refinery network, which includes the 110,000-b/d refinery in Antwerp, Belgium, and the 107,500-b/d refinery in Ingolstadt, Germany, Gunvor said.
The acquisition comes as part of Gunvor’s ongoing strategy to enhance its overall refining portfolio through integration and optimization of its refinery assets, according to the company.
The companies did not disclose financial details of the transaction.
Located at the Port of Rotterdam, the Europoort refinery includes several crude oil processing units, a gasoline production plant, a lube oil plant, and extensive distribution center and tank terminal which provide direct access to international waterways for the transport of finished and intermediate products to markets within and beyond Europe.
The sale follows KPI’s search for a financially solid, experienced, and reliable buyer that would continue to operate the refinery after KPI decided in 2014 to cancel investments plans of more than $1 billion to upgrade the refining center as European overcapacity issues continued to weigh on margins, according to local media reports out of Kuwait.
Contact Robert Brelsford at [email protected].