Refining
The ERG Group operates in the Refining sector in the supply and processing of crude oils and the sale of refined products.
Coastal Refining
The processing of the crude oils takes place at the Priolo Gargallo ISAB Refinery (Syracuse), which consists of the ISAB NORD and ISAB SUD Refining Plants. It is one of the main sites in the Mediterranean both in terms of capacity (320,000 barrels/day), complexity (9.3 on Nelson index) and storage capacity (4 million cubic metres of products and raw materials).
On December 1st 2008, ERG entered into an agreement with LUKOIL, one of the main operators in the world, to create an important partnership in the coastal refining business.
Indeed, on that date, ERG Med completed the transfer of all the Priolo ISAB Refinery assets to the newly created company, ISAB S.r.l. (51% ERG – 49% Lukoil).
On January 31th 2011, ERG S.p.A. Board of Directors approved the exeercise of the put option on 11% of ISAB S.r.l. (LUKOIL 60% - ERG 40%)
On January 31th 2012 the Board of Directors of ERG S.p.A. approved the exercise of a put option on 20% of ISAB S.r.l., valued at 400 million Euro (excluding inventory). Following this transaction, LUKOIL will own 80% of ISAB and ERG 20%.
The Priolo area is the leading petroleum site in the Mediterranean both in terms of size and complexity and it is integrated with the electricity and chemical businesses. It represents a natural deviation in ERG’s strategic planning towards a highly converted and efficient refining process that is able to process the crude oils with flexibility and greater profitability, thus obtaining products with high added value.
ERG continues to follow a strategy of plant enhancement which should allow it to adapt in good time to the evolution of the worldwide demand for oil, which is growing and becoming more and more oriented towards transportation fuels and in particular diesel.
Inland refining
The internal refineries
Rome Refinery and
Sarpom Refinery are located in two of the areas in Italy with the highest intensity of consumption. The two refineries differ in the type of conversion that they carry out.
The Rome Refinery uses thermal conversion while the Sarpom Refinery employs catalytic conversion, which is able to produce higher yields of light distillates.
Both of the refineries process mainly low-sulphur crude oils originating from the Mediterranean basin and West Africa; crude oils with high-sulphur content are processed by both refineries in the production of bitumen.
The supply of crude oil by sea takes place using ships belonging to third parties which are subjected to restrictive quality and safety checks in compliance with the group’s policy (see attached documents), carried out by highly-qualified internal specialists.
ERG Vessel Acceptance Policy
