Petroplus Files For Bankruptcy

Discussion in 'Current Affairs, News and Analysis' started by Mr_Fingerz, Jan 24, 2012.

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  1. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    Key UK Oil Refinery Coryton Closes Putting Jobs And Petrol Supplies At Risk | Business | Sky News (c) Sky News

    This is bad news, not just for the 1000 or so employed at the site. The refinery supplies c20% of all the oil in London and the South East. That capacity will have to be met from Esso at Fawley and TFE in Lindsey. There may be some additional supplies from Essar (Stanlow via the UKOP) and Valero (Pembroke via WENSAT) but in the short term at least there may be difficulties in obtaining oil supplies in that London Village.

    There will also be an impact on supplies to the four London airports.

    Until this morning, the company was the biggest independent refiner (by volume) in Europe. It had put three of its five refineries on the market after its bankers pulled the plug on its revolving credit line.

    Banks - too big to fail. Independent refiners - not too big to fail.
     
  2. There is still very large supplies that comes in up the thames, and the pipelines feed the coutry from others such as Essar Stanlow, Ineos Grangemouth, Pemboke etc... Not good news by any stretch, but it would not surprise me if another major like an Asias snaps it up on the cheap like Essar did with Stanlow. Coryton was the only plant making money for Petroplus and is still a strategic reserve for HM Gov.
     
  3. though i will say - oddly enough after the announcement was made to suppliers yesterday afternoon, loading was still taking place into the night!
     
  4. Should I panic?
     
  5. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    There are currently two independent oils warehouses on the Thames (Nustar and Vopak at Grays). The Oikos warehouses at Canvey and Dagenham also handle chemicals. There may still be an Esso facility at Purfleet, but these warehouses cannot meet the slack created by any closure at Coryton.

    Pipeline supplies via UKOP, WENSAT, or the FINALINE may not be able to bridge the gap (bear in mind that these pipelines are currently in use anyway).
     
  6. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    Not yet, but lets see what happens in the coming days.
     
  7. Pembroke: Texaco/Chevron is up for sale maybe sold already. Jobs are being cut back severely. Total or Valero maybe the same company not sure. Either way Total is in a schitt storm down there. Now owned by a Japanese company (maybe). Long story short. The oil industry in S W Wales is not the secured industry it once was. Dont bank on it being around for much longer without something drastic happening. The foreign companies that own these refineries no longer see it as a profitable site. So want to Upsticks and leave.
    Gas terminals doing OK though.
    Have a nice day.

    SK

    p.s My uncle works at Chevron, managerial production level. Best mate works at Total(Milford side) terminal type work. Conversations with both run something like "Its schitt and X bloke(outside agency assesor/streamliner) is a schitt ****". or " Would find another job but theres **** all else down here".
     
  8. very true, but there is also a large surplus of material in north west europe and, certainly the UK - if things got very serious HM Gov will step in or other terminals not currently storing low -mid distillates will be forced to step up. There is also another refinery in essex processing light crude, but not for gasoline diesel grades at the moment..
     
  9. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    PwC have been appointed administrators. They aim to keep the site running as normal until a buyer is found. That may be some time in the current market.
     
  10. Petroplus have been on the ropes for months as a result of overcapacity in the European market and chronic funding issues that limited their capacity to source stocks

    It closed down refineries in France, Belgium and Switzerland in December and the German and UK refineries have been operating at less than 50% capacity. If the whole outfit goes into total shutdown will have reduced European capacity by 7% overall which might cause some temporary local difficulties but not in the context of the overall market.

    Most likley BP, being the main purchaser of output, will buy Coryton at a knock down price.
     

  11. BP are the ones that sold it to P-Plus in the first place a few years ago.
    There's too many overheads and not enough profits involved in 'Downstream' activities.
     
  12. I am amazed this oil refinery has not been snapped up by a rival . A traffic cop told me that there is 15% less traffic volume these days due to the recession and the exhorbitant price of fuel , so maybe this closure reflects this reduced demand ?
    If electric vehicles do catch on there will be more closures , I suppose .