ISAB

ISAB owns and operates crude oil processing plants and power plants.

History

2023: Sale of ISAB to G.O.I. Energy Limited

On January 9, 2023, Lukoil"" reported that it had reached an agreement to sell an ISAB refinery (refinery) on the Italian island of Sicily. The deal should be closed before the end of March 2023, according to the company's website.

It is noted that a subsidiary of the Russian oil giant Litasco S.A. and G.O.I. Energy Limited came to an agreement, which will become a buyer. The sale will take place after fulfilling the postponing conditions, including obtaining the necessary approvals, including from the Italian government.

Disclosed the amount of the transaction on the sale of the Italian plant "Lukoil" to the Americans

G.O.I. Energy Limited, as Lukoil adds, formed a partnership with Trafigura, one of the largest international oil traders, to ensure the efficient operation of the complex after the sale. This will ensure the continuous supply of raw materials to the plant.

Thus, the deal with the investment group Crossbridge, which was reported in December 2022, did not take place. Then it was reported that the cost of selling the asset will be 1.5 billion euros. As for the financial side of the agreement with G.O.I. Energy Limited, it is not disclosed.

2022: Lukoil sells ISAB for €1.5 billion

In December 2022, it became known about the sale by Lukoil of its oil refinery in Sicily. We are talking about ISAB, which is bought by the American investment group Crossbridge for 1.5 billion euros.

Reuters Swiss The oil trader Vitol has agreed to provide funding for Crossbridge to strike a deal to then become a key oil supplier to the refinery, it said. The agreement to sell the Italian plant will be subject to local government scrutiny - Rome has the power to block the deal if it sees it as a risk of damage to jobs or production, agency sources said.

Earlier, the Council of Ministers of Italy approved a resolution on the adoption of measures to protect strategic enterprises, which include the ISAB plant. It will be transferred under the temporary special administration of the state. The Lukoil plant in Sicily processes Russian Urals oil.

The Italian authorities feared a shutdown of the refinery in Sicily due to problems with the supply of crude oil from the Russian Federation by sea after the entry into force of the sixth package of EU sanctions. According to some reports, ISAB covers 22% of Italy's automotive fuel needs. The closure of the plant could lead to the loss of 10 thousand jobs, reports TASS.

The CEO of the ISAB facility earlier in December 2022 told Italian media that talks to sell the ISAB refinery in Sicily were in advanced stages and could be completed before the end of 2022. He also said that ISAB management does not consider the external management option "neither fair nor useful."

According to Reuters, ISAB's revenue in 2022 will more than triple and exceed 10 billion euros thanks to higher diesel prices.^[1]

Notes