Ludoil Acquires Sicilian ISAB Refinery as War Impacts Europe’s Fuel Supply
Key Details of the Ludoil-ISAB Acquisition
By Francesca Landini
Background and Context
MILAN, May 13 (Reuters) - Italian energy group Ludoil said on Wednesday it had signed a deal with Cypriot private equity fund G.O.I. Energy to buy Sicilian oil refiner ISAB, as European fuel supply remains disrupted by the conflict in the Middle East.
Impact of the Iran War on European Fuel Supply
The Iran war has laid bare Europe's dependency on the Middle East for the supply of jet fuel and other refined products.
Details of the Acquisition
Ludoil’s Vision for ISAB
"The acquisition will see ISAB evolve from a traditional refinery into an energy company, underpinning competitiveness, security of supply and the development of new energy value chains," Ludoil said in a statement.
Transaction Structure
Step-by-Step Breakdown
The transaction is structured in two steps, with the first seeing Ludoil picking up a 51% interest, subject to several conditions including clearance from the Italian government under its so-called golden power regime, Ludoil said. It did not say how much Ludoil would pay for the stake and did not immediately reply to a request for further details.
Strategic Importance of ISAB
ISAB is considered a strategic asset by the government as it accounts for more than 20% of Italy's refining capacity.
Previous Ownership
G.O.I. Energy bought the refiner from Russian oil producer Lukoil's in 2023.
(Reporting by Francesca Landini, editing by Cristina Carlevaro)
