Rhone Energies, a consortium of commodity trader Trafigura and Entara, is in exclusive negotiations with ExxonMobil’s Esso Saf to acquire the Fos-sur-Mer refinery in southern France and the Toulouse and Villette de Vienne terminals.

Trafigura said in a statement on Thursday (Apr 11) it would enter into a minimum 10-year exclusive crude oil supply and product offtake agreement, including ownership of crude oil and product stocks.

Fos-sur-Mer refinery has a crude oil processing capacity of 140,000 barrels per day.

Trafigura added that Rhone Energies would continue to supply Esso Saf in the region.

The deal’s “completion is subject to regulatory approvals and is expected by the end of 2024. The financial terms of the proposed transaction are confidential,” the company said.

This is the second major acquisition by Trafigura this year following an agreement to buy the European business of Greenergy, a UK-based supplier of road fuels and a biodiesel producer.

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Trading firms like Trafigura and rival Vitol are looking for acquisition opportunities globally after they raked in billions over the last two years due to the European energy crisis and market volatility caused by sweeping western sanctions on Russia.

Trafigura posted a record net profit of about US$7.4 billion for last year, up 5 per cent from 2022. REUTERS