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Coryton Refinery to be sold in May

April 27/2012

(crsrisk) -- The future of Petroplus UK refinery Coryton, which employs around 900 people, will be decided by the middle of May, when the current deal supplying it with crude runs out, administrator PwC said. 

Work on a potential sale or restructuring of the refinerys debt is underway with a view to reaching an agreement before the deal expires in the middle of May, or the plant will close.  "Well do a deal or shut Coryton when the current arrangement finishes," Steven Pearson, partner and joint administrator of Petroplus Refining & Marketing Limited (PRML) told.

The plant received a three-month lifeline in February from a consortium of Morgan Stanley, private equity firm KKR and the co-founder of the stricken Petroplus Marcel Van Poecke.  But with capital expenditure needs of around USD1 billion and upcoming maintenance costing USD150 million due in September, the economic conditions for securing a prompt deal remain challenging.  "One of the big factors here is that with the price of oil being where it is at the moment, the cost of funding the working capital is so enormous in the short term, that the economics are difficult," Pearson said. "But thats true for any refiners out there."

Author:Anna Larionova
Tags:oil, neftehimiya.
Category:General News
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