UK’s Milford Haven refinery to close as sale fails
11/5/2014 12:00:00 AM
Murphy Oil Corp. was unable to complete the planned sale of its 135,000-bpd Milford Haven refinery and terminal assets to Klesch Refining by the deadline of October 31, the company announced today.
Murphy is now closing the Milford Haven refinery in Wales after the sale to Klesch Group collapsed, ending a four-year search for a buyer and resulting in “significant” redundancies.
The refinery is currently in a period of shutdown, and will be decommissioned and operated solely as a petroleum storage and distribution terminal, according to Murphy officials.
All but 60 of 400 positions will probably be eliminated, according to news reports. Workers will receive 30 weeks of pay and outplacement support.
“It’s very disappointing what has happened at Milford Haven and we’ll continue to work with the company concerned and try to find employment opportunities for all those who work there,” Prime Minister David Cameron said in parliament.
Bryan Kelly, vice president of UK operations for Murphy Oil, declined comment to reporters on why the deal with Klesch collapsed. Klesch agreed to buy the refinery in July and hoped to have it producing fuels by the end of the year.
Murphy says it will seek a buyer for the terminal facility along with three inland terminals.
The sale of the company's retail assets is unaffected by the inability to sell the refinery.
Additional reporting from Bloomberg
Additional reporting from Bloomberg
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