Surplus land at former Coryton oil refinery to be offered for sale


Following the acquisition of the former Coryton oil refinery, Vopak and its partners have concluded that 403 acres of land will not be required by the joint venture.

In June 2012 Vopak, Greenergy and Shell UK Limited announced the acquisition of the former Coryton refinery. The objective of the partners was to demolish the refinery, develop and invest in an import and distribution terminal called Thames Oilport to be managed by Vopak, and sell surplus land available. Vopak and its partners conducted a thorough assessment of this project, including the analyses of the economic circumstances, the key market developments in the South East of the UK, the European refinery sector developments and the total development costs of the project.

The partners have concluded that under all scenarios 403 acres of land will not be required and accordingly decided to now offer this land for sale. Vopak has conducted its own in-depth analysis of the financial consequences of the decision to offer the land for sale and recognizes, subject to certain assumptions, an impairment on the book value of its equity participation in the joint venture in the range of EUR 40 - 45 million. A substantial part of this impairment relates to the anticipated demolition of the assets on the land for sale, which were not in use and accordingly did not contribute to the earnings. The impairment will be reported as an exceptional loss in the HY1 2015 figures. The HY1 2015 figures will be published on 21 August 2015.

In Q4 2013 Vopak classified the Thames Oilport business development project as "under review" based on the experienced delays to agree the project scope and commercial arrangements. Accordingly, since Q3 2014, the capacity associated with the project has been excluded from Vopak's confirmed future expansion overview list. The partners will continue to review the strategic options, including the development of an import and distribution terminal, for the remaining 161 acres of land and infrastructure. The status "under review" remains unchanged.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs