On June 26, the joint administrators of Petroplus Refining and Marketing Ltd (PRML) announced that they had entered into an agreement for the sale of the majority of the assets at the Coryton site to a joint venture, consisting of Royal Vopak, Greenergy and Shell UK Limited.
The administrators understand that the joint venture parties intend that the future use of the site is to be an import terminal, after significant reconfiguration of the existing site. The administrators are presently overseeing the removal of all crude oil and refined products from the site and are managing the safe closure of the refinery.
The sale follows a five month exercise to explore all the options for the refinery. As stated by the administrators in May, there was insufficient interest from the oil industry and financial investors in acquiring the business as an operational refinery and, as such, the administrators commenced steps to cease operations with a view to selling the site for an alternative use. Refining ceased at the plant earlier in June.
The sale of the assets of PRML will be completed once the current refinery closure process has been concluded. This is likely to take some months, as the various units are decommissioned and remaining crude and refined products are removed from the site. There is no change to the redundancy programme announced by the administrators earlier in June. As a reminder, approximately 180 roles will be made redundant in June, with further redundancies anticipated from late July onwards as the closure progresses. It is expected that a small number of employees and contractors will be retained to provide site security beyond the end of the summer.
Steven Pearson, joint administrator and partner at PwC, said:
“It is regretful that there were no credible offers for the business at Coryton as a going concern as it has been necessary to cease refining and make employees redundant. Ultimately, the administrators have a legal responsibility to achieve the best price possible for the assets and we have been able to obtain the highest price by selling the site for an alternative use. We understand that the joint venture partners intend to develop the site in due course, which we hope will provide an important and stable source of supply of fuel for the foreseeable future.
“We recognise that the closure results in the redundancy of the majority of the employees at Coryton and we intend to work with the local agencies and authorities to provide assistance during this difficult time.
“We now have to spend the coming weeks and months completing the removal of the remaining oil and ensuring that the closure programme is safely managed ahead of the sale of the assets to the joint venture partners.”
New import terminal for oil products at Coryton
In a statement issued on June 26, energy minister Charles Hendry said: “Vopak, Greenergy and Shell have committed to investing a substantial amount in the site to develop it as a state-of-the-art import terminal. This includes paying for enhancements to the infrastructure that will keep the site viable for many years.
“As a result, the UK will have a new import terminal and its first deep water product jetty. This will allow low-cost high quality diesel to be imported, thereby enhancing security of supply for London and the South East, and more affordable prices at the pumps.
“The construction and operation of the terminal should also create significant economic activity in the region over the next 2-3 years. Vopak estimate that up to 50 direct jobs could be supported at the terminal. But, there will be much wider knock-on effects, with additional jobs available for contractors with skills in maintenance, security, engineering, truck driving and construction”.
“To continue operating as a refinery, some hundreds of millions would have needed to be invested in the plant, and unfortunately this has presented a huge barrier to potential new owners to invest because of the costs involved.
“The site is of exceptional value as an import terminal because of its location and amenities, so it is not surprising that it has had a higher sale value as an import terminal, which does not also require the extra investment a refinery would need”.
“ This is very sad news for the workers at Coryton, who will be extremely disappointed that PWC has been unable to find a buyer for the site as a refinery.
“We are doing everything we can to help these skilled people to find new posts, and are working with the Thurrock Council taskforce, local agencies and Jobcentre Plus to ensure they get the support they need at this difficult time”.
Coryton assets to be sold to joint venture
Speaking yesterday, energy minister, Charles Hendry told representatives from Thurrock Council, Unite, local MPs and the administrator PWC that the government had “looked long and hard at whether or not state aid should be provided for Coryton” before concluding that “the existing overcapacity in the refining industry and declining demand for petrol means that it would not be sustainable.”
Future options for the refinery were discussed along with the work the administrators are doing to secure a sustainable future for the plant. The minister reiterated government’s commitment to help those workers who are at risk of losing their jobs if the refinery closes.
Charles Hendry said: “From the outset of this process, we have worked tirelessly with the administrator to find a way to secure a successful outcome for Coryton and to safeguard local jobs.
“It is extremely disappointing that the administrators have not found a buyer for the refinery, despite their strong efforts. Unfortunately considerable additional investment is needed to keep the refinery operating efficiently, and this has meant that potential bidders have been faced with high upfront investments to make in the order of some hundreds of millions.
“UK refineries face tough competition from other refineries in Europe and increasingly in Asia, which means that profit margins are low and there is overcapacity in the sector. If government did step in to help Coryton, this would be a short-term fix, and it could potentially lead to job losses at other refineries which would be at an unfair disadvantage.
“We realise this is a really worrying time for those who work at the refinery in Coryton, for their families and their communities more generally. We will be doing whatever we can to support people through this difficult period.”
https://fuelondev.wpengine.com/2012/06/possible-buyer-for-coryton-says-unite/
https://fuelondev.wpengine.com/2012/05/no-deal-for-coryton/
Last week anti-trust regulators approved Mabanaft’s takeover of Bominflot. The acquisition of this long established bunker trader makes Mabanaft one of the leading international bunker companies.
The merger of Bominflot, which will now operate under the name Bomin, and Matrix Marine, Mabanaft’s subsidiary in the bunker business, is regarded by Mabanaft as an important step in an effort to combine the strengths of both companies on a sustainable and long-term basis.
For Mabanaft, the acquisition is seen as a strategic step forward. As the bunker business deals with transactions involving physical oil, where logistics and customer loyalty play an important role, Mabanaft regards it as complementary to its strategic core competencies. Likewise, Bomin has now acquired critical mass on the ship bunker market, and, as a result, will now rank as one of the world’s largest bunker companies.
The managing director of the Bomin Group is Peter Schreiber. Stefan Herde, managing director of Matrix Marine Holding, will also be a member of the management team of the Bomin Group.
Bomin is an independent bunker trader and supplier, with more than 35 years of experience. Its business activities include the supply of bunker fuels and lubricants, cargo trading and ancillary services to the shipping industry. With a staff of more than 300 in 36 offices worldwide, Bomin is organised into three regions, The Americas, Europe/Africa and Far/Middle East.
Meanwhile, Matrix Marine has been involved in the bunker business for almost 15 years. It has established itself as a leading independent supplier of bunker fuels and related services. Current locations include the US Gulf Coast, Singapore, Oman and India.
www.mabanaft.com www.matrixmarine.com www.bomin.com
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Over the past three years, Scottish Fuels has increased its marine lubricants customer base by more than 600%. The increase is a result of re-introducing Castrol Marine Oil back into Scotland, says the company.
Scottish Fuels became the sole distributor of Castrol Oil to the marine trade in Scotland, after the company was awarded the inshore marine contract in 2009. Since then, the company has seen the number of customers using Castrol Marine rise from 23 to 139.
The steady customer growth has been attributed to Scottish Fuels’ 18-strong team which has been applauded in a recent Castrol report, for providing the highest standards of customer service compared to its other distributors.
Andrew Salton, lubricants manager at Scottish Fuels, said: “At Scottish Fuels, we recognise that in the marine industry, the key to efficiency is reliability and ensuring we stock and effectively deliver the best products.”
www.scottishfuels.co.uk
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GB Oils has completed a series of road shows for its Total dealer network where the challenges and opportunities for retailers were discussed and its commitment to supply dealers across the whole of the UK was welcomed.
More than 110 retailers attended events in Birmingham, York and Windsor where Ramsay MacDonald, retail director for GB Oils, presented a case for the Gulf brand as part of the company’s growth strategy.
Guest speaker, Brian Madderson, chairman of the Retail Motor Industry (RMI) Petrol, acknowledged the importance of working closely with an organisation that now accounts for around 25% of the dealer market’s 5500 sites.
“The GB Oils strategy is good for the industry and good for the independent,” he said. “With further investment planned in products, infrastructure and growth, the Gulf brand has huge potential. Most importantly for dealers is a recognisable, reliable brand that provides an all-inclusive deal, offers a full range of products including premium grades, a convenience shops programme, and a comfort factor for the consumer. We face so many challenges, but now is the hour for the good dealer, backed by a supportive fuel supplier.”
Mr MacDonald reported that 15 Total dealers had already agreed to convert to the Gulf brand and said that, following the road shows, the momentum was building and around 45 sites were expected to rebrand to Gulf by the end of the year.
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Petrol normally lost to delivery tankers equipped with stage 1B vapour recovery can now be retained says Petroman Environmental Services.
“The Total Vapour Solutions system pays for itself, and begins to actually make money in a remarkably short time, simply by retaining petrol that would otherwise go back to the depot or refinery,” says Roger Bailey, sales manager of Petroman Environmental Services.
“When a tank is ready to accept a new delivery, it is normally low on liquid and high on ullage filled with petrol vapour. When the tanker attaches its delivery hose to the fill pipe and beings delivery, that vapour is taken back into the tanker,” says Roger.
By using the new system, a forecourt can recover up to four litres of petrol from this vapour for every 1000 litres sold. According to Petroman, this is equivalent to a saving of around £3.60. www.petroman.ltd.uk
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Highlighted in the last newsletter by uSwitch, fuel poverty continues to throw up a range of statistics and opinions.
Speaking about the recent fall seen in the 2010 fuel poverty statistics, Energy minister, Greg Barker was “encouraged by the fall in fuel poverty in the period to April 2011,” but added “there is no room for complacency. Fuel poverty remains a serious national problem and the coalition is absolutely committed to tackling it.”
Fuel poverty statistics for 2010 published by The Department of Energy & Climate Change (DECC) show that the number of fuel poor households throughout the UK fell, year on year, from 5.5 million to 4.75 million.
England’s figure fell to 3.5m in 2010, projections for 2012 indicate this will rise to around 3.9m this year.
Professor John Hills of the London School of Economics and author of the Hills Fuel Poverty Review warns that the number of households in fuel poverty could rise to 9.2m or 43% of households. www.decc.gov.uk/hillsfuelpovertyreview
Greg Barker added: “People can still get help with heating and insulation through Warm Front, and around two million households will get money off their energy bills this year through the Warm Home Discount scheme.”
“Ambitious new policies” which include the Green Deal, “will help people pay for home improvements through savings on their energy bills, with extra financial help for the most vulnerable.”
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A Shropshire homeowner may have what is thought to be one of the oldest domestic oil boilers still in operation in the UK. Perhaps one of your customers can beat this 39-year old boiler?
Marton Hayes, of Oswestry, contacted Worcester, Bosch Group after discovering that his WEC Firefly HD II had been heating his three-bedroom detached home since it was built in 1973.
With an output of 60K BTU (17.5 kWh), the Firefly falls short of the much improved outputs of the latest generation of boilers, but Mr Hayes revealed that it remains in good working order despite its age. “I think this is a fantastic achievement as the boiler is still performing excellently after 39 years of service,” he said.
“I moved into the property with my wife and four children back in 1986 and, having continued to service the boiler annually, we have experienced no problems other than the odd replacement spare part.” Mr Hayes plans to replace his antique Firefly with a Worcester Bosch Greenstar boiler very soon.___________________________________________________Worcester, Bosch Group is offering a five-year guarantee on all Greenstar oil-fired boilers installed until 30th June.www.worcester-bosch.co.uk/5year___________________________________________________
Martyn Bridges, director of marketing and technical support at Worcester, Bosch Group added: “We were pleased to hear that Mr Hayes’ Firefly boiler has given him and his family such good service and are sure the replacement will prove to be just as reliable.”__________________________________________________If you know of a customer with an older working boiler, please send details to jane@fueloilnews.co.uk.__________________________________________________
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Whether installing, lining or removing storage tanks or fuel polishing, Mechanical Cleansing Services (MCS) has established a reputation for its strict policy towards environmental responsibility.
“Whenever possible, MCS uses recycled products both on site and in the office,” says managing director, Damon Roe. “It is company policy to investigate new developments in environmentally-friendly products and methods of carrying out works.”
MCS, which has more than three decades of experience in the fuel distribution industry, provides the following services:
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