Ergon announced today that its subsidiary Process Oils Inc. has acquired MOGoil, a major base oil trader in Europe.
The transaction greatly boosts the European presence of the American refiner, which is the world’s largest producer of naphthenic base stocks as well as a significant asphalt supplier in the United States.
“The addition of MOGoil will expand our regional expertise and further position us to better meet global market needs on a larger scale,” Process Oils President Lance Puckett said in a news release.
The companies did not disclose the price of the deal.
Based in Berlin, MOGoil was founded in 2006 and specializes in procurement of base oils and related products from refineries in Central and Eastern Europe, as well as the Far East and North America. It deals in API Group I, II and III mineral oils along with naphthenic and rerefined base oils, process oils, rubber process oils and wax. Much of MOGoil’s business flows through the Noord Natie terminal in Antwerp.
In 2022 MOGoil ranked 80th on ICIS’ list of Europe’s largest chemicals distributors, with sales revenue of U.S. $114.9 million.
Process Oils is based outside Houston and is a technical marketer of base oils and process oils, focusing on a customer base of industrial lubricant producers. It distributes paraffinic and naphthenic base oils, as well as biobased base stocks and aromatic oils. Ergon acquired the business in 2015.
Ergon is a family-owned business headquartered in Flowood, Mississippi, United States, and supplies a wide range of oil products and related services. Its refining subsidiary operates two oil refineries – one in Vicksburg, Mississippi, the other in Newell, West Virginia. The former includes a naphthenic base oil plant with capacity to make 1.2 million metric tons per year of naphthenic oils plus 150,000 t/y of paraffinic base stocks, making it the world’s largest source of pale oils.
Ergon’s base oil marketing arm entered the European market years ago and also sells into South America and the Asia-Pacific region.