Denmark: Acquisition Equinor Sells Refining Business to Klesch Group
Equinor has signed an agreement to sell its refining business in Denmark to the Klesch Group. The move will enable Equinor to focus on its strategy of strengthening its refining position around Mongstad, Norway.
Stavanger/Norway – The agreement covers the Equinor Refining Denmark (ERD) company consisting of the Kalundborg refinery and terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen as well as associated infrastructure and industrial property.
Upon completion of the transaction, including approval by Danish authorities, all ERD employees will be transferred to the Klesch Group with equitable employment terms as within Equinor.
The Kalundborg refinery can process 107,000 barrels a day of crude oil and condensate for gasoline, diesel, propane and heating oil.
“This transaction supports Equinor’s strategy to focus its portfolio around core areas. Equinor will concentrate its refining position around Mongstad, Norway, where the company can leverage its integrated industrial cluster, expand the portfolio of low carbon energy products provided and contribute to Equinor’s efforts in the energy transition. Over the years, Kalundborg has provided solid results and strong efforts have been made to maintain safe and reliable operations, also with the recent challenges caused by the pandemic,” says Irene Rummelhoff, Equinor’s executive vice president for Marketing, Midstream and Processing.
In a statement, A. Gary Klesch, the Chairman of the Klesch Group, says: “Given the proximity of our refinery in Germany, I’m sure there will be lots of opportunities for both refineries to work together; especially when it comes to deploying our decarbonization strategy”.
The Kalundborg refinery can process 107,000 barrels a day of crude oil and condensate for gasoline, diesel, propane and heating oil. Annual production capacity is up to 5.5 million tonnes of oil products. Completion will, among other things, be dependent on approval by the Danish authorities. Further commercial details on the transaction will not be disclosed.