Family owners of Whitegate refinery eye potential sale

Irving Oil owns Ireland’s only oil refinary

Whitegate oil refinery in Co Cork

The Canadian owners of Ireland’s only oil refinery, at Whitegate in Co Cork, have indicated they’ll consider a possible sale after saying they’re reviewing strategic options for the entire business, that may include a full sale of the business or asset disposals.

"No decisions have been made about where this strategic review may lead," the company said on its website Wednesday.

However, the strategic review raises the possibility the Irish refinery bought in 2016 from US owner Phillips 66 is potentially on the market. Family owned Irving also bought Ireland’s Tedcastle group of companies in 2019.

The Irish Independent reported in March that the Government here made changes to its windfall tax on bumper energy profits Irving Oil warned that the new charge could force it to shut down.

A secret Cabinet document showed the scope of the tax was diluted following the warning.

Ministers were told in a confidential memo that disruption to the operation of the Cork refinery – which can process 75,000 barrels of oil a day and employs around 230 people – could impact on consumer oil supplies, particularly in the south of the country.

In a letter as well as in subsequent meetings, Irving Oil warned of the impact of the charge on the refinery’s viability. It stated that it had made significant losses in recent years along with the levels of investment made to ensure its continued safe operation.

Irving Oil has also been exploring the potential of converting the Whitegate facility for use as a renewable energy production hub, in partnership with offshore wind developer Simply Blue.

That plan could see Whitegate adapted for generation of green hydrogen and down-stream use in the production of electro-fuels for local and international markets.

Irving's key refinery in New Brunswick, Canada, has the capacity to process 320,000 barrels of oil a day and supplies fuel to motorists in much of the US Northeast as well as eastern Canada. it also runs more than 900 filling stations in eastern Canada and the US.

The Irvings are one of Canada's wealthiest but most low profile families. Arthur Irving, whose signature is on Wednesday's statement, is the country's 16th-richest person with a net worth of $5.3 billion, according to the Bloomberg Billionaires Index.

(Additional reporting Bloomberg)