ExxonMobil Exits Mediterranean Refining Market

ExxonMobil has finalized the sale of its Fos-sur-Mer refinery in France, marking its exit from the Mediterranean refining market. The facility has been sold to a consortium comprising Entara and Trafigura, who confirmed the deal on Friday. Along with the refinery, the sale includes the Toulouse and Villette-de-Vienne terminals operated by Exxon’s local unit, Esso.

Rhône Energies, the buying consortium, has committed to a long-term supply agreement with Esso SAF, ensuring continued support for its downstream operations in the region. This move reduces Exxon’s total refining capacity in Europe to approximately 1.1 million barrels per day. Despite this reduction, Exxon remains the second-largest refining capacity holder in northwestern Europe, following France’s TotalEnergies.

Exxon is also nearing the completion of another divestment, a 25% stake in the German MiRO Mineraloelraffinerie Oberrhein GmbH refinery. The stake is set to be sold to Alcmene, a wholly-owned subsidiary of the Liwathon Group. The deal, originally agreed upon last year, is part of a broader trend where major oil companies are selling non-core downstream assets to focus on upstream growth and reduce emissions. Last year, Exxon agreed to sell its stake in MiRO, the second-largest refinery in Germany, to Alcmene, a wholly-owned subsidiary of the Liwathon Group, which specializes in midstream oil and commodity trading. However, the deal has yet to be completed.

Oil trading companies have been actively acquiring these assets. Vitol Group recently purchased a 35% stake in the Saras refinery in Italy after reaching a deal with members of the Moratti family. Glencore, another leading oil trader, acquired Shell’s refining and chemicals assets in Singapore through CAPGC Pte. Ltd., a joint venture with Chandra Asri Capital.

Story via OilPrice.com