France’s Total has signed an agreement to sell its 16.67% stake in the Schwedt refinery in north-east Germany to Russian oil and gas giant Rosneft, which already holds indirectly an 18.75% interest in the facility.
The deal is valued at $300million (£190million) excluding working capital and remains subject to customary approvals.
Philippe Sauquet, president, Total refining and chemicals, said: “The sale of our minority interest in the Schwedt Refinery is in line with our 2017 target to reduce Total’s European refining and petrochemical capacity by 20%, as announced in 2012.
“Monetising this non-core asset also contributes to the group’s accelerated disposal program in 2015 and demonstrates Total’s commitment to actively manage its portfolio across all segments.”
The Schwedt refinery has a capacity of 12million tonnes per year (Mt/y). It is owned by Shell (37.5%) and indirectly by Rosneft (18.75%), BP (18.75%), Total (16.67%) and Eni (8.33%).
Total has a strong presence in Germany, where it employs 3,500 people and owns 100% of the 12 Mt/y Leuna refinery, one of Europe’s most competitive sites.
Total is also the country’s fourth largest retail operator and continues to expand its network.
Recommended for you
