FRANKFURT/SINGAPORE (Reuters) -German utility Uniper has agreed to sell its oil refinery in the United Arab Emirates to a consortium of Montfort and the private office of Sheikh Ahmed Dalmook Al Maktoum for an undisclosed sum, it said on Thursday.
The sale of Uniper Energy DMCC, Uniper’s local crude oil processing and marine fuel trading business, is one of several conditions Uniper must comply with in exchange for EU approval of a government bailout that could cost more than 50 billion euros ($54 billion).
Sources told Reuters last month that Montfort had emerged as the top bidder for Uniper Energy DMCC, which produces and supplies low-sulphur fuel oils to the Fujairah market, the world’s third-largest bunker fuel market.
The acquisition is expected to be completed in the coming months, subject to regulatory approvals, Montfort said on Thursday.
“We are delighted to enter into a strategic partnership with the Private Office to acquire a leading position in a sector that is central to our trading activity,” Montfort said.
Located in Fujairah, the refinery has a 65,000 barrel per day crude processing facility and sells more than 30 million barrels of low-sulphur fuel oil to the shipping industry each year.
“We believe that this flagship asset will bring additional expertise and resources to benefit the local production and sale of marine fuels,” Al Maktoum said.
($1 = 0.9339 euros)
(Reporting by Christoph Steitz and Jeslyn LerhEditing by Rachel More and David Goodman)