Total sheds stake in German refinery

OAO Rosneft has completed a deal for the purchase of Total SA’s minority interest in the 11.5 million-tonne/year PCK Raffinerie GMBH refinery, located along Druzhba pipeline in Schwedt, Germany, about 120 km northeast of Berlin.

Total and Rosneft signed a final sale and purchase agreement for Total’s 16.67% share in the refinery at the St. Petersburg International Economic Forum in Russia on June 19, the companies said.

Valued at $300 million excluding working capital, the transaction is due to close following regulatory approvals, Total said.

Rosneft, which already holds an 18.75% stake in the Schwedt refinery, first announced the deal in late 2014 after signing an agreement with Total outlining main terms and conditions for the proposed sale (OGJ Online, Dec. 1, 2014).

At final closing, Rosneft, together with its BP PLC-joint venture Ruhr Oel GMBH (37.5%), will own close to 55% of the German refinery (OGJ Online, May 6, 2011).

Additional stakeholders in the Schwedt refinery include Royal Dutch Shell PLC (37.5%) and Eni SPA (8.33%).

Total’s decision to shed minority interest in the Schwedt plant is in line with its 2017 target to reduce the company’s European refining and petrochemical capacity by 20%, said Philippe Sauquet, president of Total Refining & Chemicals.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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