Total SE has agreed to sell its UK downstream business—including subsidiary Total Lindsey Oil Refinery Ltd.’s 109,000-b/d refinery in North Killinghome, Immingham, Lincolnshire, and associated logistics assets—to Prax Group, a London-based global independent trading, storage, distribution, and retail firm.
The transaction is scheduled to close by year-end, once conditions of the sale have been satisfied, Total said on Monday.
In separate releases, Prax Group and Total UK Ltd. said the sale agreement involves all activities of Total Downstream UK Ltd., which alongside the Lindsey refinery, also includes the Finaline pipeline and Killingholme loading terminal, together with Total’s shares in the Hertfordshire Oil Storage Ltd., (60%), Associated Petroleum Terminals Ltd., (50%), Crude Oil Terminals Ltd., (50%), Humber Oil Terminals Trustee Ltd., (50%) and Warwickshire Oil Storage Ltd., (50%).
The parties, however, did not reveal a value of the proposed deal, but Prax Group said, in acquiring the refining and logistics assets, it will bring new investment to the refinery as well as retain its current 400 employees, which it views as a key element for future success of the site.
Total’s divestment of the UK downstream assets comes as part of the operator’s strategy for its European refining base, which involves focusing investments on integrated refining and petrochemical platforms, according to Bernard Pinatel, president of Total’s refining and chemicals business.
“After considering several options for the future of the Lindsey site, Total chose the one that best protects local jobs,” Pinatel said.