By Inti Landauro, Benoit Faucon and Selina Williams
Potential buyers from Iran and Libya this week stepped up
efforts to take over a bankrupt French refinery, despite Royal
Dutch Shell PLC's (RDSB.LN) decision to stop supplying the plant
with crude this month.
The interest from atypical contenders for the French refinery,
which may have to shut down if another crude supplier cannot
immediately be found, highlights the French government's challenges
in seeking to keep domestic refineries open.
The Petit-Couronne refinery in Western France was among a string
of industrial facilities new French President Francois Hollande had
promised to protect before being elected. The refinery is in
trouble after its owner, Swiss-based company Petroplus Holdings AG,
filed for protection from creditors.
A commercial court Tuesday in the northern city of Rouen heard
proposals from existing and potential bidders to buy the plant,
which employs 550 staff and is the main domestic supplier of oil
products to the Paris area, said a spokeswoman for the Rouen court
that will rule on the refinery sale.
The court is due to decide Friday whether to end the bidding
process or to accept new or improved bids until early next
year.
Representatives of Tadbir Energy, an Iranian refiner owned by
the nonprofit Khomeini Foundation, confirmed at the court hearing
that it intends to pursue an offer first made in April, said Xavier
Houzel, who represents the firm in the bid.
The company has provided proof that it could have access to
financial support and crude supply, he said.
Acquiring a refinery in the European Union wouldn't be illegal
for Tadbir, but any bid would be difficult because of Iran
sanctions, lawyers have previously said.
A team from the Libyan Investment Authority--Libya's sovereign
wealth fund, which is another potential buyer of the French
refinery--visited the plant Monday, Mohsen Derregia, the head of
the fund, said Tuesday. But the fund's potential bid faces strong
opposition from Libyan transparency activists.
A third contender, Netoil, a Dubai company owned by businessman
Roger Tamraz, is the most advanced in detailing its offer terms, a
person familiar with the matter and French refinery workers' unions
said.
But the Netoil bid has been deemed incomplete because it needs
more administrative authorizations.
Royal Dutch Shell Tuesday confirmed it would interrupt supplies
to the refinery in mid-December as planned--effectively forcing the
plant to halt operations, at least temporarily.
Potential buyers said they will move forward with their
approach. "We have expressed non-binding interest for the refinery"
and that hasn't changed, Libya's Mr. Derregia said.
But others, such as Tadbir's Mr. Houzel and the person familiar
with the Netoil approach, said the expected halt to refining
operations would complicate their bids as restarting it would
involve extensive safety precautions.
Write to Inti Landauro at inti.landauro@dowjones.com, Benoit
Faucon at benoit.faucon@dowjones.com, and Selina Williams at
selina.williams@dowjones.com
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