[LONDON] ExxonMobil entered exclusive talks to sell its entire 82.89 per cent stake in French unit Esso SAF, including a key refinery, to North Atlantic France SAS for about 400 million euros (S$584.2 million).
If completed, the deal would significantly diminish Exxon’s presence in France, after the company announced last year that it would shut down part of its petrochemical operations in the country. The moves highlight the challenges faced by Europe to keep energy-intensive industries running amid regulations to curb greenhouse gas emissions and international competition.
The final acquisition price, which includes a significant amount of cash on Esso’s balance sheet, will be determined by a number of different factors prior to the completion of negotiations, according to a statement from Exxon on Wednesday (May 28). Completion of the deal would be subject to obtaining regulatory authorisations and financing agreements, and is expected to occur during the last quarter of 2025.
By acquiring the Gravenchon refinery in northern France, North Atlantic is planning to develop the Normandy site “into a green energy hub, leveraging its infrastructure to accelerate the deployment of low-carbon fuels and renewable power,” according to a statement. Gravenchon is one of six oil refineries in France.
Still, Exxon’s crude-supply contracts for the refinery will remain and the Texas-based energy giant will maintain some staff in the country through a marketing and commercial center, the company said. The firm will market chemicals, finished lubricants, base stocks, synthetics and other specialty products, while the Esso brand will remain visible at 750 fuel stations.
The company has been shrinking its European presence, as its longtime UK office south of London is due to shut in 2026. Exxon sold its Fos oil refinery in France last year to a consortium that includes Trafigura Group. Exxon has been trying to sell its stake in Miro, Germany’s biggest oil-processing complex.
The sale of Gravenchon leaves Exxon with plants in Antwerp and Rotterdam – Europe’s oil-trading hub – as well as Fawley, the UK’s biggest refinery. BLOOMBERG
