Esso Italiana reached agreement to sell Augusta refinery and associated terminals: Base stocks and Wax business relationships continue
- Change in ownership not affecting Group I supply capacity
- ExxonMobil brand and product integrity will be maintained
- ExxonMobil’s base stock and wax customer business relationships and contracts are not expected to change
Spring, Texas, May 9, 2018 – Esso Italiana earlier today announced it has signed an agreement for the sale of its Augusta refinery, three fuel terminals in Augusta, Palermo and Naples, and associated pipelines to the Algerian state oil company SONATRACH.
Esso Italiana and ExxonMobil will enter into multi-year commercial and technology agreements with SONATRACH for refinery products, including Group I base stocks and waxes, as well as the operation, improvement, and use of the Augusta, Naples and Palermo terminals.
“ExxonMobil is committed to meeting its customer’s evolving needs. We will continue to provide a reliable supply of Group I base stocks, globally and in EAME including the ExxonMobil AP/E CORE™ slate manufactured in Augusta,” said Julia Ruessmann, sales manager, EAME Basestocks & Specialties. “With this agreement and a robust manufacturing network around the world producing Group I CORE™, we will remain the largest global marketer of high-quality Group I base stocks.”
Base stocks and waxes from Augusta will continue to be marketed by ExxonMobil at current specifications. A dedicated transition team will ensure continuity of the business and prepare for a successful hand over and continuation of manufacturing of ExxonMobil products.
“Customers can continue to rely on our CORE™ and SN Group I base stocks to deliver consistent quality and broad blending coverage across the full viscosity range,” said Ruessmann. “The transaction does not affect ExxonMobil’s contracts and business relationships. We will continue to supply our base stocks and wax customer portfolio, with the goal of being their supplier of choice.”
The sale is expected to close by the end of 2018 and is subject to a number of conditions and applicable legal requirements.
About ExxonMobil Basestocks & Specialties
Building on its long tradition of technology leadership with its CORE™ Group I base stock slate ExxonMobil continues to enhance the EHC™ product line to enable excellence for its base oil and lubricant blending customers. To this end, ExxonMobil technical experts designed the overall EHC Group II slate to meet performance requirements of a wide range of engine oil grades and other finished base oils and lubricant applications. For more than 50 years, ExxonMobil has worked to be the wax supplier of choice to its customers, providing consistent product quality while ensuring reliable supply. Our product line includes Parvan™ fully refined waxes, Prowax™ slack waxes, and Waxrex™ semi-refined and specialty fully refined waxes.