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Isado

Ireland's only oil refinery is being sold to a huge Canadian company

Canada’s Irving Oil is to buy the facility, sold by the government for €100m, for an undisclosed amount.

IRELAND’S ONLY OIL refinery at Whitegate in Cork is set to be sold to Canadian operator Irving Oil.

The facility’s current owner, Phillips 66, put the refinery up for sale last year but had been struggling to find a buyer. There had been several reports of a deal being closed in recent days.

Irving Oil announced today that it has reached an agreement with Houston-based Phillips 66 to buy the refinery.

Financial details of the sale were not revealed by Irving. The company said that it “ looks forward to sharing more information on this acquisition upon the close of the purchase and sale agreement”.

It said that the transaction is expected to close by the end of the third quarter “once all conditions of the sale have been met”. Once the deal is complete Irving will assume full ownership of the refinery.

There had been fears for the future of the refinery and its staff as a contract to keep the facility open was due to end.

However, Irving said that it will continue to oversee the “full operation of the facility, including maintaining its existing workforce”.

State owned

Whitegate was state owned until it was sold by the then-Fianna Fáil government in 2001 to US refining firm Tosco for €100 million. Tosco was later taken over by Phillips 66.

The Whitegate facility is Ireland’s sole refinery, processing up to 75,000 barrels of crude oil per day and producing transportation and heating fuels such as gasoline, diesel and kerosene.

Built in 1959, it has a workforce of 160 employees as well as many contract personnel.

Irving

Irving chairman Arthur Irving said that the company was “pleased” to buy the refinery.

“It’s a good day for our company and we’re looking forward to welcoming the Whitegate team to Irving Oil,” he said.

Irving Oil was founded in 1924 and is a privately owned regional refining and marketing company.

It operates Canada’s largest refinery in Saint John, New Brunswick, which is located 65 miles north of the US border and has produced more than 320,000 barrels per day.

Written by Paul O’Donoghue and posted on Fora.ie

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    Mute hw007
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    Aug 3rd 2016, 3:09 PM

    This was state owned which means it was owned by the Irish people as per our constitution .
    Why do the government think they have the authority to sell something that’s owned by the people and a referendum should have been put in place by Fianna fail to vote a decision in by the people to sell or keep same .

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    Mute P.J. Nolan
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    Aug 3rd 2016, 3:14 PM

    I presume they had the authority because we voted them in…..

    77
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    Mute Reg
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    Aug 3rd 2016, 3:17 PM

    And the state needs to own an oil refinary because…………

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    Mute jane
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    Aug 3rd 2016, 3:18 PM

    What strikes me is when it was sold. We weren’t strapped for cash back then so you’d wonder what the motivation was for selling.

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    Mute Fred Johnson
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    Aug 3rd 2016, 3:24 PM

    Why do we need an oil refinery? It’s not like that would magically make us energy independent. We import 100% of our oil. lol

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    Mute Phil Blanc
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    Aug 3rd 2016, 3:57 PM

    “What strikes me is when it was sold. We weren’t strapped for cash back then so you’d wonder what the motivation was for selling.”

    Because we’ve no need to own an oil refinery.

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    Mute jane
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    Aug 3rd 2016, 4:14 PM

    The refinery supplies 40 per cent of the Irish market and the Government regards it as key to maintaining energy security in the Republic.
    The Minister for Communications, Climate Action and Environment, Denis Naughten said: “Security of energy supply is important to ongoing economic growth and development and a pillar of our energy policy.
    Irish Times

    Not sure about that Phil.

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    Mute Rory J Leonard
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    Aug 3rd 2016, 4:20 PM

    Some Tosco executives travelled over to Ireland from US in 2001 with a draft for €100 m and asked a Corkman, close to Government, should we buy Whitegate Oil Refinery?

    His answer was “Do Buy, Boy”

    That’s my understanding of what happened.

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    Mute Brendan Hughes
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    Aug 3rd 2016, 5:31 PM

    There are a few independent and privatly owned refineries up around the border, small opperations but they could cover the gap in the market.

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    Mute Rob Conneely
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    Aug 3rd 2016, 9:17 PM

    Fred, it’s cheaper to import raw crude oil instead of refined product.

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    Mute EmmaQ@gmail.com
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    Aug 3rd 2016, 3:09 PM

    How much did they pay for it?

    72
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    Mute Patrick O Shea
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    Aug 3rd 2016, 4:25 PM

    Any news on the ground about the offshore drilling rights sold to BP and ExxonMobil who plan to do whatever they wish in the richest fishing ground we have left the porcupine basin off West Cork and Kerry? Since they are banned from doing drilling State side of the Atlantic Coast sure why not head this way to the political nonsensical sheep.

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    Mute Fred Johnson
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    Aug 3rd 2016, 7:28 PM

    Is drilling for oil a bad thing Patrick or would you rather we left it in the ground and imported the stuff from Saudi Arabia?

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    Mute Brown Boots
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    Aug 3rd 2016, 8:38 PM

    Banned! It’s not licensed for reasons more than just environmental and fishing. But then that might need to be looked into but who needs facts! In fairness Ireland’s exploration is held back due to the shell to sea campaign impacting on our reputation and the fact we have limited supply base! If the government had any clue they would invest in the infrastructure not just for that reason but also for fishing and tourism!

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    Mute ThatSonyGuy
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    Aug 4th 2016, 12:15 AM

    They drill Canada side of the water, 13 wells off the coast of Newfoundland (a mostly Irish province) and more to come. Hopefully the Irvings will keep your existing workforce on the job.

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    Mute Fergal McDonagh
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    Aug 3rd 2016, 3:24 PM

    Plenty of backhanders I’d imagine.

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    Mute brian magee
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    Aug 3rd 2016, 4:59 PM

    Why do you say that ? It was a private transaction between 2 private companies

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    Mute Fergal McDonagh
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    Aug 4th 2016, 10:22 AM

    Was referring to original sale in 2001 to Tosco. I should’ve made that clear.

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    Mute Paul Culligan
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    Aug 3rd 2016, 3:36 PM

    As an Irish citizen, that’s my fcukin’ oil. I don’t remember authorising this.

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    Mute Reg
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    Aug 3rd 2016, 4:05 PM

    Your oil? Since when have we had oil?

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    Mute von
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    Aug 3rd 2016, 6:50 PM

    Well said Paul.

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    Mute Brown Boots
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    Aug 3rd 2016, 9:33 PM

    Please tell me that comment is a joke? Do you have to authorise every decision? What about authorising the suppliers of the crude oil? Your way of thinking would fit right in with the government!

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    Mute P.J. Nolan
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    Aug 3rd 2016, 2:58 PM

    Wally will not be amused

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    Mute Phil Blanc
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    Aug 3rd 2016, 3:02 PM

    I suspect he rarely is.

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    Mute Paul McGowan
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    Aug 3rd 2016, 3:31 PM

    Hahaha

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    Mute Dubabroad
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    Aug 3rd 2016, 4:25 PM

    Baduum-tish!!!!

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    Mute Billy Mooney
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    Aug 3rd 2016, 4:36 PM

    Indeed. Though the damage was done when the plant was privatized initially by FF in 2001. And I did find the Brexit result and the impotent outrage of the establishment quite amusing.

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    Mute Colette Kearns
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    Aug 3rd 2016, 4:43 PM

    Quantities of oil discovered in Irish waters over the passed 15 years government figures estimate reserves at 420 BILLION. However this weath has been taken from the Irish economy thanks to Charlie Haughey & Ray Burk! But the people of Norway are very happy & have thanked us. ( can been seen on youtube )

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    Mute Tom
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    Aug 3rd 2016, 5:28 PM

    Link?

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    Mute Trevor Beale
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    Aug 3rd 2016, 5:44 PM
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    Mute Reg
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    Aug 3rd 2016, 5:45 PM

    You do know there’s a big difference between discovered and produced?

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    Mute Sean D
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    Aug 3rd 2016, 6:22 PM

    So that would give Ireland the biggest reserves on earth? Enough with the sensational figures with cap locks. Estimates mean nothing. Do you have a figure for proven reserves? Or what about a figure for commercial find to exploration drill ratio? Didn’t think so.

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    Mute J
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    Aug 3rd 2016, 8:04 PM

    Nobody is drilling for oil here with the current price of a barrel.

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    Mute Seamus Corcoran
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    Aug 3rd 2016, 8:16 PM

    Amazing how nobody is queueing up to drill for all this oil. Can’t believe idiots are still spewing this ill informed shite.

    The oil is only worth money when it comes ashore. Not one single irish well has done that.

    Not one.

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    Mute Brown Boots
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    Aug 3rd 2016, 8:41 PM

    Surveying work is on going and there was an appraisal campaign south of the old head last year.

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    Mute Declan Cosgrave
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    Aug 3rd 2016, 4:11 PM

    Im confused…..did one of our natural resourse ministers not appear on primetime/news or Clare byrne to suggest Ireland had NO oil ???…surely he didnt lie on tv ???

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    Mute Piero Tintori
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    Aug 3rd 2016, 4:20 PM

    It’s a refinery, not an oil well. We inform the crude oil and decide what to make out of it.

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    Mute Tom
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    Aug 3rd 2016, 4:21 PM

    It’s a refinery, the crude oil is shipped from abroad.

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    Mute Mjhint
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    Aug 3rd 2016, 5:20 PM

    Yes tom because it can only use what’s call sweet crude. I believe a lot of it comes from Libya. This place is prehistoric & requires lots of investment. Highly unlikely as we can import refined product easily.

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    Mute gregory
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    Aug 3rd 2016, 10:46 PM

    Wrong . Cheap Sour crude from Libya was before all the destruction there. Converted to valuable Sweet crude using their new state of the art Asa Plant ( Amine & Sulphuric Acid Plant ). So sulphur out. Combine w/ h20= env friendly disposal of h2so4 (sulphuric acid) I.s.o. Env costly disposal of waste sulphur/burn off SO2.

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    Mute Padraig
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    Aug 3rd 2016, 2:56 PM

    Will they follow up with these service stations here.
    http://www.siemenssays.com/wp-content/uploads/2013/02/irvin-oilretail.jpg

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    Mute Rob Conneely
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    Aug 3rd 2016, 9:14 PM

    There’s a good chance it’ll be used as a storage facility.

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    Mute O'Callaghan Stephen
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    Aug 3rd 2016, 3:04 PM

    Pj Nolan you beat me to it.

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    Mute Patrick O Shea
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    Aug 3rd 2016, 5:49 PM
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    Mute Brown Boots
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    Aug 3rd 2016, 8:48 PM

    Shocking amount of misinformation and poor understanding of the up and downstream oil and gas operations in some posts! But far be it from facts to get in the way!

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    Mute Colette Kearns
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    Aug 3rd 2016, 5:42 PM

    Tom, unfortunately I cant put up links, but just Google it. Shocking stuff!

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    Mute Virtual Architect
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    Aug 3rd 2016, 10:52 PM

    The government can’t run businesses. This us a business not public infrastructure like hospitals or libraries. e.g. Does the government run mobile phone companies? No, Works perfectly well without their greedy snouts in the trough.

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