'Several' parties in refinery sale talks (From Milford Mercury)

'Several' parties in refinery sale talks

10:40am Thursday 9th February 2012 in News

BOSSES at the Murco Milford Haven refinery say they are in discussions "with several interested parties" about the potential sale of the facility which employs more than 350 people.

The news comes after it was revealed that Murco's parent company, Murphy Oil, have openly considered ending refining operations at the plant and turning it into an oil storage facility.

In a media call last month, President and Chief Executive Officer of Murphy Oil David Wood, said: "In the absence of an acceptable offer we are evaluating the potential conversion of the facility into a terminal with its excellent location, water access and storage capacity of over nine million barrels".

He added that if the company went ahead with a plan to separate the retail part of the business "then that refinery, as a terminal, not as a refinery, would be part and parcel of that".

Responding to the comments, a spokesman for the Milford Haven refinery said that after the sale of two US refineries the company would now focus on "the divestiture of the Milford Haven refinery."

He added that it was an ongoing process "and it has been slower in the UK due to the difficult refining market in north west Europe."

The spokesman continued: "We are presently engaged in discussions with several interested parties, "In addition to divesting of our refining assets, Murphy is also evaluating the potential spin of our Downstream business into a separate independent Retail and Midstream entity and one possible outcome that must be well understood and is part of the process, is what to do if we do not achieve our primary goal of selling the refinery. That is why we are evaluating other options for Milford Haven Refinery.

"We expect to reach a decision on the Downstream business later this year. "

MP Stephen Crabb said he was confident that a buyer would be found and refining operations would continue.