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ExxonMobil reportedly seeking buyer for Billings refinery
MONTANA
EXXONMOBIL is reportedly seeking a buyer for its Billings, Montana refinery, which pro- cesses roughly 60,000 barrels per day (bpd). Cit- ing three sources familiar with the super-major’s plans, Reuters reported that representatives of large refiners had toured the facility. According to two of the sources, these included representa- tives of Valero Energy and Marathon Petroleum.
However, one of the sources was cited as say- ing that a smaller refiner would be a more likely buyer.
While none of the firms reportedly involved have commented publicly on the matter, a Mar- athon spokesman pointed to recent comments by the company’s CEO, Gary Heminger, that the refiner was considering portfolio optimisation and asset sales.
But an ExxonMobil spokesman, Dan Carter, told the Billings Gazette this week that the Reu- ters report was just a “market rumour”, add- ing that the company does not comment on rumours or speculation.
“The company always evaluates its portfolio, businesses and opportunities,” Carter added. The Billings Gazette reported that he dismissed
the possibility that ExxonMobil could be seeking a buyer for the refinery.
Reuters previously reported that ExxonMo- bil had been in discussions with PBF Energy over selling the Billings plant in 2016. However, according to sources familiar with the matter, the deal was scrapped because ExxonMobil wanted to sell the facility as part of a package that also included its Joliet, Illinois refinery. PBF report- edly only wanted the Billings plant.
Previously ExxonMobil had been targeting about $500mn from the sale of the Billings refin- ery. Reuters’ sources said the facility was still expected to fetch the same amount.
ExxonMobil’s efforts to sell the Billings refin- ery come as the super-major steps up investment in its Gulf Coast refineries instead. It operates two refineries in Texas – at Beaumont and Bay- town – and one in Baton Rouge, Louisiana.
The super-major announced in January that it was expanding the capacity at its 366,000 bpd Beaumont refinery. Its increasing focus on its Gulf Coast infrastructure suggests that a shift away from smaller plants such as the Billings refinery is therefore likely despite Carter’s denial.™
PROJECTS & COMPANIES
Equinor contracts DNV GL for Bay du Nord infrastructure certification
NEWFOUNDLAND & LABRADOR
The project is expected to require an FPSO.
NORWAY’S Equinor has awarded the certifying authority and classification contract for its Bay du Nord field offshore Eastern Canada to DNV GL. Under the contract, DNV GL – a quality assurance and risk management company – will ensure that new infrastructure that will be built for Bay du Nord will be compliant with both local and global safety requirements.
DNV GL said it would oversee design review activities and site surveillance during construc- tion, commissioning and installation of the infrastructure, which is currently at the pre-front end engineering and design (pre-FEED) stage. A final investment decision (FID) on Bay du Nord is anticipated in the second quarter of 2021.
According to DNV GL, the project will com- prise a floating production, storage and offload- ing (FPSO) unit, a disconnectable turret and moorings system, steel lazy wave risers and a subsea development with four subsea templates.
If the partners in the project – Equinor with 65% and Husky Energy with 35% – proceed to
FID on schedule, first oil from Bay du Nord is anticipated in 2025. Newfoundland and Lab- rador’s provincial energy corporation, Nalcor Energy, is expected to buy a 10% interest in Bay du Nord.
The project has already been under develop- ment for several years, following its discovery in 2013. It was one of the largest finds made that year. The field is located roughly 480km north- east of St. John’s, Newfoundland and Labrador, in the Flemish Pass Basin. DNV GL noted that the distance to shore and the lack of infrastructure in the basin – where Bay du Nord is the first field to be developed – both present challenges. The offshore region is also known for its harsh envi- ronmental conditions, including high winds, sea ice and icebergs. All of these factors will need to be taken into account as Equinor and the other parties involved proceed with Bay du Nord’s development.
The project was estimated last year to cost CAD10.9bn ($8.3bn).™
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