Spotlight 35
Adam Kerbes has been appointed to oversee Pace Fuelcare’s business in the Midlands and will be based at a new office in Coleshill.
Adam will oversee oil distribution depots across the region, including the new office in Coleshill, which is scheduled to open before the end of the year.
His primary objectives will be to stimulate organic growth and position the Pace Fuelcare brand as the first choice for customers in the area.
Adam brings a wealth of industry experience, having held senior managerial positions within the LPG and retail divisions at BP UK, before joining Pace Fuelcare five years ago.
Adam said: “It’s my aim to ensure that we continue to provide the best level of customer service by extending our product range and service offering and providing individually-tailored packages, to ensure we are meeting the needs of our customers.
“The soon to be completed sales operation at Coleshill will play a key part in this by bringing our staff and distribution fleet from the nearby depots under one roof, making this location our transport hub for the region.”
Philip Wharton, general manager for Pace Fuelcare, added: “Adam was the natural choice for this position as he has extensive business and oil industry knowledge to bring to the role. His knowledge of the area and our customers’ requirements in this region are also vital qualities which will assist him to deliver the exceptional standards that our customers have come to expect.”
www.pacefuelcare.co.uk
Oiltanking, a subsidiary of Marquard & Bahls which also includes Mabanaft, has entered into an agreement to acquire the Helios terminal in Singapore.
Subject to regulatory approvals, the company will also acquire, the terminal’s holding company Chemoil.
The purpose-built Helios terminal has a total capacity of 503,000 cbm and was commissioned in 2008. Oiltanking already operates two terminals in Singapore with a combined storage capacity of more than 1.7million cbm.
www.mbholding.com.
Tony, who will chair the Greenergy Audit and Risk Committee, joined Premier Oil as finance director in June 2005. He started his career as a chartered accountant with Arthur Andersen before joining Lehman Brothers inLondon, initially as an oil sector analyst. He joined the investment banking division of Lehman in 1987 and from 1997 was managing director and head of the European Natural Resources Group. In this role he managed both client relationships and numerous transactions for a variety of European and North American clients.
Greenergy, Vopak and Shell UK completed the acquisition of the former Coryton oil refinery in Essex at the end of last month.
It marks the end of a sales process which started in June, after former owners Petroplus entered administration.
The joint venture plans to turn the site into an import and distribution terminal called Thames Oil Port, expected to be operational in 2013.
Ian Cochrane, managing director of Vopak Terminals UK, said: “Thames Oil Port will be a sustainable business designed to meet the fuel needs of London and the South East for the foreseeable future.
He added: “Over the next couple of months as the plans are finalised we will be able to give more information about how that business will be staffed and run.”
(L-R) Kevin Knight, Andy Tout, Jamie Starr, Becky Venton, Kevin McCoy and Chris Allen
Tincknell Fuels continues to operate separately as GB Oils acquires Tincknell Lubricants on 31st August.
The lubricants business will trade as Emo Oil, an authorised Shell lubricants distributor, supplying products to commercial, agricultural and domestic customers across the south west of England.
As well as consolidating its existing customer relationships in the region, the company will expand its service across all sectors, including industrial, agricultural, aviation and automotive.
As part of the acquisition, seven former Tincknell Lubricants’ employees will join the business, all to be based on the Dawlish Road in Exeter. Kevin Knight and Jamie Starr will be business development managers, Rebekah Venton an account manager, Andy Tout a depot supervisor, whilst Chris Sampson will be a yardman and Kevin McCoy and Chris Allen will be employed as drivers.
Ross Buckland, head of lubricants at GB Oils, commented: “This acquisition will further strengthen our position in the south west of England; increasing our storage and distribution infrastructure and enhancing our ability to attract and serve existing and new customers throughout the market. We welcome the Tincknell Lubricants team to the GB Oils family and look forward to building close working relationships in the months ahead.”
Stoddards shows off its new RTN tanker with Alpeco equipment
Stoddards has taken delivery of a brand new baby tanker from Road Tankers Northern.
The tanker is fully equipped with Alpeco bottom loading and vapour recovery equipment and the MF400 electronic meter system with metered uplift facility.
Judith Stoddard explained: “With so many of our drops being to rural villages, homes and farms we needed a small truck to cope with difficult access such as narrow gates and entrances. This was the prime motivating factor in going for a small truck just to carry on servicing those customers.
“My father used to buy trucks from RTN and we have continued to buy from them as they are knowledgeable about our business and offer an excellent product. The drivers like the Alpeco meters and are familiar with them and particularly like the remote control feature. I would think it fair to say that all the trucks we have in the future will be fitted with this facility.”
Clive Felton, RTN’s sales manager added. “We’ve dealt with Stoddards since the 1990s and have been their preferred supplier of fuel delivery vehicles ever since. The latest vehicle is 3-compartment, 8600 litre, aluminium, fully ADR and petroleum regulations compliant. The vehicle has been built on a DAF LF45 210 chassis.”http://www.stoddards.co.uk/
Latest figures released by Lewis Tankers show a much improved financial performance for 2011.
Revenues grew 53% over the previous year to £11 million, and there was a 90% improvement in gross margin, which resulted in a break even at operating profit (after interest) – a turnaround of £450,000 from 2010.
Performance is now ahead of the original five year business plan prepared by directors in 2009.
New business with Kuwait, World Fuel Services, Univar, and Brenntag, contributed to revenue growth, while the company has implemented a new operational control system, which has led to significant efficiencies. During the year the company restructured its management team to improve market focus by bringing together operational and commercial responsibilities.
As with the previous two years, business started poorly in 2012 due to unseasonal good weather, which affected volumes in fuel distribution, especially in Scotland. However, trading in other sectors has remained strong and the company expects to hit its financial targets.
Managing director Stewart MacDonald commented: “We’re pleased with our 2011 performance and are confident that we can continue to successfully develop the company. We continue to sign new business and our pipeline remains very strong for the balance of the year and beyond. With that in mind we are continuing to invest in new people and new vehicles. Staff numbers have grown from 108 to 120 and our tanker fleet has increased from 71 to 85.
“Probably the biggest challenge now facing us is to determine our geographical strategy. Increasingly, we’re producing new business opportunities outside our traditional operating locations in the north of England and Scotland, and we need to find sensible solutions – probably by small-scale acquisitions.”
http://www.lewistankers.co.uk/
Adler & Allan is among Britain’s 100 fastest growing private equity backed companies. Henry Simpson and Mark Calvert receive their award. The company achieved 67th place
The need to diversify is certainly a topic of conversation among fuel distributors – some have already ventured into third party haulage, whilst for others renewables are adding a new dimension.
When it comes to diversification and keeping one step ahead of the market, Adler & Allan (A&A) is a shining example. Starting out as a London-based coal and coke merchant in 1926, A&A became a fuel distributor over 40 years ago. Aided by a series of strategic acquisitions, the company has spread its wings to encompass a range of associated activities including tank and forecourt services, spill response, mechanical and electrical maintenance, waste management, fuel polishing and testing.
In the midst of developing further new services, Fuel Oil News editor, Jane Hughes spoke to group sales & marketing manager, Alan Scrafton, to learn more. “Fuel polishing, vapour recovery refining, forecourt security products, Sockit filters, oxygen depletion in waterways and spray coat bund lining – these are just some of the most recent services added as a natural progression, and ensure that A&A continues to grow,” Alan explained.
Bolstered by acquisitions and some major contract wins A&A has consolidated its UK-wide presence. Cross selling its new services to existing customers is further aiding the business’ organic growth.New appointments aid expansion
Heading up the marine sales drive is Glyn Humphries. Formerly with Briggs, Glyn is chairman of the UK Spill Association. “Glyn’s brought a new impetus and vast experience to A&A, particularly in this sector,” said Alan. “Working alongside a larger client base and the Maritime & Coastguard Agency, we also have a busy training schedule running tier 1 and 2 level exercises.” Richard Tindell’s appointment as marine operations manager has bolstered A&A’s capability in the field. Richard has already been on active duty with recent spills and oxygen depletion incidents in lakes around the UK.
Looking after the industrial and tank services section is general manager, Gary Wilson. Ex Veolia,Garyhas particular expertise in managing large scale contracts in refineries and power stations. New projects for this division include a trackside refuelling facility for locomotives carrying cargo at Doncaster, with prefabricated underground storage tanks linked to high speed refuelling pumps, and a petrol refuelling facility for marine craft with above ground tank storage.
The acquisition of E&S Environmental in 2009 brought Nobby and Andrew Clarke into the team together with Dr Philip Nathan who runs A&A’s fuel laboratory. “E&S has invested in the latest equipment to provide the same analysis results as a UKAS-accredited laboratory, which enables us to offer a very competitively priced and fast turnaround service,” Alan reported.
As group safety systems advisor, Tony Gallagher has a customer-facing approach on HSE matters. Good at presenting to customers, he is upgrading policy across the business. “Working with A&A’s forecourt businesses, E&S and AJ Bayliss, Tony is currently arranging customer H&S days; being such a critical part of the business, we’re looking to fine tune this all the time,” explained Alan.
“With SHEQ manager, Carol McCalla spearheading ISO accreditation across the Group, these appointments are enabling us to better fulfill critical contractual obligations.”A greater geographical spread
A&A’s strength lies in being able to offer customers a significant breadth of capability across a wide geographical area.
A&A now has two bases in Scotland and recently appointed John Gilmour as operations manager working alongside, Amanda Merchant, area manager Scotland.
Earlier this year A&A Scotland were highly commended by all stakeholders following response to an emergency callout when a tanker carrying 20,000 litres of aviation fuel crashed causing a large oil spill. Local residents were evacuated and pollution control was carried out over four months under the watchful eye of the Scottish Environmental Protection Agency (SEPA).
Selected from an initial field of 212 potential contractors, A&A has a 4-year contract as emergency environmental response contractor for Scottish Power – covering the Scottish Lowlands, North Wales and Lancashire. “Having secured a contract with Scottish Power, other new business has followed in Scotland,” said Alan. A&A also has contracts with E.ON and Western Power Distribution and aims to win further energy utilities contracts.
A&A has increased its presence around the country to deal with the growth of contracted business. Most recent new depots include Droitwich, Doncaster and Tunbridge Wells.
Depot manager at the company’s Manchester-based waste division is Peter Lohan. “The north-west is a growth area and with a strong emphasis on sales, Peter has turned this business around; the base now employs 20 staff,” said Alan.
The aforementioned staff are just a handful of A&A’s 320-strong team, which is headed up by managing director, Mark Calvert. Mark, who joined the business 20 years ago, has alongside him commercial director, Henry Simpson, who leads the business development drive and operations director, Dave Whiskerd, both of whom joined in the late 90s. Keith Potts joined the board in 2010 as compliance director to manage the group’s wide scope of SHEQ requirements.From coal to fuel distribution and a network of specialist services
A&A still distributes fuel primarily from its new national operations centre at Barking (the company moved from Stratford in 2009 to make way for the Olympic redevelopment). A&A offers a 24/7 emergency fuel service, particularly appreciated by the south east’s banking and data centres. Located in eastLondon, A&A knows the area and can react quickly.
Aiming towards a national network of specialist services, consistency of approach across an ever expanding range of services and geographical areas is increasingly vital. “We have a major project underway to integrate internal systems using Goldmine Enterprise. This will process all enquiries, quotes, invoices and sales reports; it’s a big investment that will take us to a higher level operationally,” explained Alan. “It will enable us to be more precise in the way we handle contracts and, for me as a marketeer, it will give access to customer information ensuring better promotion of related services. Excellent communication and customer relationship management is important as the business continues to grow.”
Much of A&A’s growth can be attributed to the exposure it received cleaning up the Buncefield oil terminal following the explosion in December 2005 which led to 20 tanks catching fire. Appointed as principal contractor, A&A managed the uplift and disposal of over 27 million litres of contaminated waste and the safe cleaning of damaged infrastructure for demolition. Working in a very hazardous and tightly monitored environment, the project took 28 months and 80,000 man hours to complete without sustaining a single lost time incident.
With waste permits for oily waste, A&A is very active in fuel tank decommissioning at facilities such as power stations, distilleries and defence sites. Also working with emerging technologies, A&A provides spill prevention services to off and onshore wind farms. “With hydraulic oil needed to power a wind turbine, there is a risk of contamination on land and at sea,” explained Alan. Also offshore, A&A undertakes industrial cleaning on oil rigs.
The vision of A&A’s board, coupled with the appointment of experienced and dynamic managers, has fuelled this UK-wide diversification and expansion. “We’re getting lots of enquiries from overseas and we will go anywhere in the world (the company undertook projects in Sierra Leone, Nigeria, the Falklands and Norway in 2011),” said Alan. Always one step ahead, it’s worth watching this space for A&A’s next move.
Stolt-Nielsen has announced the acquisition of a storage terminal at Dagenham from Norbert Dentressangle.
Completion is subject to the transfer of licences and permits, and the receipt of necessary approvals to operate the facility. The transaction is expected to close during the company’s fourth quarter of 2012.
The terminal consists of 195 tanks with a total of 134,000cbm.
Walter Wattenbergh, president of Stolthaven Terminals, said: “This terminal, our first in the UK, joins Stolthaven’s growing global network of bulk-liquid storage facilities. The Dagenham terminal gives us a foothold in the UK market and will provide added support to the Stolt Tankers’ inter-European coastal fleet. Our initial plans include an immediate upgrade programme, with the decommissioning of several old tanks and the construction of new tanks.”
http://www.stolt-nielsen.com/
Following its recent expansion, IFC has announced two new appointments.
Craggs Energy managing director, Chris Bingham, and new depot manager Jeremy Cosway
Craggs Energy has become the new owners of the Samuel Cooke and Co depot, based in Padiham.
Last month came the sad news that the Burnley based fuel distributor Samuel Cooke & Co, had gone into administration resulting in the loss of over 80 jobs.
Craggs Energy, an independent fuel company based in Hebden Bridge, has taken over the depot and launched the business in the Lancashire area using the local knowledge of two former Samuel Cooke and Co employees.
Craggs Energy managing director, Chris Bingham, explained: “We have built our business by using experienced staff and delivering high levels of customer service at a fair price. Opening a depot in the Burnley and Pendle area means we can extend this promise and provide the local area with a family run local company they can trust to take care of their fuel requirements”
Jeremy Cosway, ex depot manager, and Ben Duckworth, ex marketing manager, of Samuel Cooke and Co have both joined the team to launch the new Padiham site.
Jeremy Cosway said: “I worked at Samuel Cooke and Co for six years and I was the depot manager for two of those. It was sad to say goodbye but I’m really happy that I can continue my career in Padiham and continue to focus on the local area”.
Ben added: “I was really disappointed when Samuel Cooke and Co Ltd was forced to close, but thanks to Craggs Energy, we can continue our efforts of serving the Burnley and Pendle area out of the well-known Padiham depot.”www.craggsenergy.co.uk
New regional manager for south east Anglia, Keith Durrant
GB Oils has appointed Keith Durrant as regional manager in south east Anglia, to manage the new Pace Fuelcare depot in Ipswich.
Keith, who has lived much of his life in the local area, brings a wealth of business experience to the role, having held several senior managerial positions with companies such as ICI, Burmah – Castol and Total. Keith joined GB Oils two years ago.
His primary objective in his new role will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers across the region. The area includes oil distribution depots in Shefford, Letchworth, Cambridge, Braintree, and Hadleigh, plus the newly constructed multi million pound terminal in Ipswich.
Simon Willis, general manager at GB Oils, commented: “Keith’s appointment to manage the business in south east Anglia comes following his successful work for the company during the past two years. We have no doubt that he will be fantastic in this new role and will help deliver our ambitious plans for the new depot and wider area.”
Keith added: “As well as providing competitive pricing and continuous improvements to services, my aim is to ensure we continue to deliver exceptional standards of customer satisfaction, whilst remaining at the forefront of fuel distribution, both within east Anglia, and throughout the UK”.
The joint administrators of Petroplus Refining & Marketing have published their first progress report on the administration, which illustrates the depth of the financial challenges faced in continuing to operate the Coryton refinery.
The report provides creditors with a detailed description of progress that has been made in the six months since the appointment of the administrators.
Trading losses from refining during the six-month period of administration are currently estimated at $22m-$31m, on sales of some $347m. Of this loss, some $20m relates to capital expenditure incurred and written off in the period.
The report also states that an extensive exercise to obtain the best value for creditors from the sale of Coryton found that offers to run the site as a refinery were materially lower than for an alternative use.
It is currently estimated that the net funds available for distribution to unsecured creditors may be in the order of $102m-$135m. Gross realisations from the assets of the company are projected to be $199m-$209m.
Steven Pearson, joint administrator and PwC partner, said: “This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months.
“The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining.”
DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012.
The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011.
The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced.
Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes.
Tommy Breen, DCC chief executive, said: “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.”
www.dcc.ie
Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge
Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil.
Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service. The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.”
A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration.
Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.”
Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants. In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/
Frank Carroll, chairman and owner of Samuel Cooke & Co
Burnley based fuel distributor Samuel Cooke & Co went into administration in late July.
The company’s staff were informed on 23 July that the majority of the 86 jobs had been lost as a result, although 12 were retained to assist the administrators.
Some customer dealings are now being investigated by the police, although no further details are currently available.
Administrator Paul Flint said: “The business suffered an unexpected loss in relation to a specific group of customers that impaired asset value and, as a result, placed the business under a significant cash strain.
“The directors reported this position to the police, and it remains under investigation.”
“Regrettably, despite the best attempts of the directors to recover from the situation, they have been unable to find a solvent solution to allow the businesses to continue to trade.”
A statement on the company’s website read: “Paul Flint and Brian Green were appointed joint administrators of Samuel Cooke & Co Limited on July 23 2012. The company has ceased to trade with immediate effect and the assets of the company are being earmarked for sale.”
Steven Reeve, driver (l) and Russell Fairchild, operations director of WP Group
WP Group has announced the acquisition of local fuel distributor Upton Oil Company.
Based in Poole with depots across the south including Ringwood and Dorchester, Upton Oil Company specialises in supplying a local, friendly service to heating oil users, the farming community and commercial customers.
David Fairchild, managing director of WP Group, commented: “This acquisition is beneficial for both parties as it brings together a wealth of experience and knowledge from both sides. I have always respected Upton Oil Company’s customer loyalty and hope to further improve the service they receive by utilising WP Group’s extensive infrastructure across the south coast.”
He added, “The business will continue to trade under the long established Upton Oil Company brand and will service the existing customer base, who will not notice any disruption to normal service.”
www.thewp-group.co.uk
Andrew Owens, chairman of Greenergy
Greenergy has announced the purchase of assets at the former Petroplus facility in Teesside from the joint administrators of Petroplus Refining Teesside Ltd, PwC.
The Seal Sands based terminal, previously operated by Petroplus, ceased commercial operations shortly after the company went into administration earlier this year.
Greenergy has been supplying customers in the region from the nearby Vopak terminal, where it has invested in fuel manufacturing, storage and distribution facilities. Andrew Owens, Greenergy chief executive, commented: “The north east is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing north east system to give additional product and manufacturing capability.
This strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell.”
The terminal will remain closed for commercial supply over the next few months while development plans for the site are drawn up in cooperation with the relevant authorities.
The plans will include the construction of a new rail head, making Teesside the hub of Greenergy’s rail distribution network. This will allow efficient movement of fuel between Teesside and other UK locations by rail, rather than road or ship.
The existing 20 staff will be retained, and will assist in the development planning.
DCC Energy UK’s acquisition of several heating and transport fuel distribution businesses, including Butler Fuels, has been provisionally cleared by the Competition Commission (CC).
The case was referred by the Office of Fair Trading (OFT) in April, and the final report is expected to be published by the CC by 18 September 2012.
DCC bought the businesses in September 2011 from Rontec LLP, which had previously bought them from Total Downstream UK in June 2011.
In its findings, the CC has provisionally stated that customers supplied by the various businesses would not be adversely affected by a decrease in competition, as a result of the deal.
Chairman of the DCC/Rontec Inquiry Group and CC deputy chairman, Simon Polito, commented: “Central to our decision has been the effect on customers requiring small-scale deliveries across a number of sites, and whether they would be likely to use a number of different suppliers as an alternative to a single supplier with nationwide coverage. We found that these customers are generally quite sophisticated in their purchasing practices. A number of them already multi-source and are also prepared to switch in response to a price increase, so we decided the impact of the merger on these customers would be small.”
http://www.competition-commission.org.uk/
Alex Ward
GB Oils has appointed Alex Ward as London regional manager. The area has been recently established as a new operating region to better serve customers in the capital.
As part of his new role, Alex will be responsible for leading the business in London, including the Pace Fuelcare barges on the River Thames. His primary objective will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers.
Alex has worked for the company for 12 months, previously as regional manager for GB Oils in the South East.
He said: “As well as providing competitive pricing and continuous improvements to services, my main aim is to ensure we continue to deliver exceptional standards of customer service.”
Simon Willis, general manager at GB Oils, added: “We have no doubt that he will be a fantastic addition to the team and will help deliver our ambitious plans for this new region.”
Topaz CEO John Williamson, former Ireland rugby international, Alan Quinlan, and Rebecca Rushe, Aware’s head of fundraising, pictured at the launch
A major partnership between Topaz and Irish charity, Aware, was launched by former Ireland rugby international Alan Quinlan.
Keyfuels has appointed Laura Balmforth as its new marketing executive.
Laura will be working closely with the company’s management and sales teams to help develop strategies for ongoing business growth, building strong partner and customer relationships and helping to identify new opportunities.
Managing director, Peter Bridgen, said: “It’s an extremely exciting time. Over the last few years we’ve increased our network by more than 50%, providing the largest wholesale priced network in the UK. Our market position has been built up on the strength of this network coupled with our ability to work in partnership with our customers to develop fuel management strategies that make a real difference to their bottom line.
“Laura’s appointment highlights our ongoing investment in people as well as our commitment to providing a first class customer service.”
For the second year running, Keyfuels, which employs over 50 people at its Walsall headquarters, has achieved one to watch status in the Best Companies accreditation scheme.
Peter McCarthy, service and operations director, commented: “This award is very special to us as it is based entirely on staff feedback. We understand that the biggest assets any company can have are its people and we work hard to ensure that we communicate effectively with all staff.”
www.keyfuels.co.uk.
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The world’s largest oil trader, Vitol has teamed up with Marcel Van Poecke, co-founder of Petroplus, to buy the Cressier refinery in Switzerland.
Petroplus administrator, Wenger-Plattner reported last week that Varo Holding SA – the joint venture between Vitol and Van Poecke’s AtlasInvest – had agreed to buy the Cressier plant and will complete the transaction by the end of June. The move is seen as part of the Vitol’s drive to expand into physical assets.
The 68,000 barrel per day plant will resume activities after the handover is completed, added the administrator, dismissing the suggestion that the plant will be converted to storage.
A quality, niche refinery, storage assets and wholesale marketing opportunities
Vitol’s chief executive, Ian Taylor, said that the transaction provides the company with access to a “quality, niche refinery and a supply chain of storage assets and wholesale marketing opportunities.” He predicted that it would become a valuable source of growth for the Vitol Group.
Varo’s main rival for the Cressier plant was strongly rumoured to have been former Russian energy minister, Igor Yusufov, via his investment arm, Fund Energy.
Coryton
Marcel Van Poecke, who founded Petroplus in 1993, and oversaw its operations for 13 years, has also been involved in offering a temporary lifeline at Coryton. Fuel Oil News contacted PwC, administrators for Coryton yesterday and can report that there is no further comment at this time. Bids closed on 2nd April. Gary Klesch is rumoured to be among those interested.
Yesterday a crude oil tanker was heading for Coryton. Does this mark the end of the three month rescue deal or the start of a new one?
Antwerp
Swiss-based trader Gunvor has completed the acquisition of Petroplus’ Antwerp plant in Belgium which will restart in the next few days after a four-month outage
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Concerned that the merger of Total Butler and GB Oils would remove a key competitor to GB Oils; the Office of Fair Trading (OFT) referred the acquisition to the Competition Commission just before Easter.
In England and Wales, GB Oils has 100 depots whilst Total Butler has 40. Both supply a similar range of oil products to domestic, commercial and agricultural customers.
Of particular concern to the OFT is the supply to customers who require deliveries across multiple sites, but whose volumes are too small for them to be viably served by the major oil companies or by oil traders.
“Although there are a large number of oil distributors operating in theUK, three of them stand out in terms of the scale of their networks: the two merging parties and Watson Fuels,” said Amelia Fletcher, OFT chief economist and decision maker in this case.
“A significant number of multiple site, non-bulk customers, who need suppliers with access to such infrastructure, were concerned at the prospect of a merger of GB Oils and Total Butler. We consider that the Competition Commission should look in detail at the impact of the merger on these customers, as well as whether the merger may result in higher prices for customers buying oil products in specific local areas where the parties overlap.”
The Competition Commission is expected to report on the case by 18th September 2012.