Road builder Colas Group is close to completing purchase of a base oil plant in Dunkerque, France, and said it plans to continue making base stocks at the site.
European competition authorities indicated April 26 that they will not contest Colas Groups purchase of Societe de la Raffinerie de Dunkerque, according to Bloombergs BusinessWeek web site.
The plant, which has capacity to make 6,600 barrels per day of base oil, is currently a joint venture between ExxonMobil, Total and BP, which own stakes of 50 percent, 40 percent and 10 percent, respectively. The plant also makes asphalt, and this is the main attraction to Colas, of Boulogne-Billancourt, France, which is one of the worlds largest road builders. Nevertheless, a Colas official told Lube Report Monday that base oil production will continue.
We do not need base oils for our own operations, said Delphine Lombard, director of press relations. In any case, it is not possible to reconfigure the plant so that it does not make this product.
An ExxonMobil spokesman said a few remaining approvals are still needed but that the company expects the transaction to be completed soon. Lombard said it should be sealed by June or July. The agreement was first announced last year. Colas is paying 20.5 million (U.S. $26.6 million), according to BusinessWeek.
ExxonMobil refused to say whether the agreement calls for Colas to supply base oils from the plant to the existing owners. Of the 6,600 b/d capacity, 5,100 isAPI Group I oils, the other 1,500 b/dis Group III.
Societe de la Raffinerie de Dunkerque is located outside but near Totals larger Flanders refinery. Total announced recently that it will close the larger refinery this year. The base oil plant does not depend upon the refinery for its feedstock supply.