Refinery marketing effort did not attract a buyer
Conversion will begin in 2013
Care will be taken to meet the needs of customers and employees
DARTMOUTH, NS, June 19, 2013 /CNW/ - Following a comprehensive
evaluation of alternatives, Imperial Oil will continue to serve east
coast Canadian markets by converting its Dartmouth refinery into a
Despite interest in the refinery assets over the past year, Imperial was
unable to attract a buyer to continue operating the refinery.
"The results of the marketing effort illustrate the challenges of
operating a refinery of Dartmouth's scale in the competitive conditions
of the Atlantic Basin market," said Rich Kruger, Imperial Oil chairman
"We recognize that closing the refinery is a difficult decision for our
employees and the local community. We will make every reasonable effort
to minimize the impact."
Mr. Kruger said Imperial is grateful for the tremendous efforts of the
workforce to improve the viability of the operation in a very difficult
"Our focus in the near term will be on continued safe and
environmentally sound operations while making facility modifications
that will support ongoing supply of competitively priced petroleum
products to the market," added Mr. Kruger.
The initial start-up of the converted facilities is planned for later in
2013 depending on progress with facility modifications in the coming
months. Decommissioning surplus facilities will be a multi-year
A non-recurring after-tax charge of between $260 million and $280
million is expected to be included in Imperial Oil's second quarter
reported financial results.
The refinery began production in 1918 and has throughput capacity of
approximately 88,000 barrels per day. Approximately 200 employees and
200 contractors are employed at the refinery and related terminals.
Minimal changes are expected to the operation of the related terminals
located at Dartmouth, NS, Sydney, NS, Corner Brook, NL, Sept-Iles, QC
and Cap aux Meules in the Magdalen Islands.
Imperial Oil is one of Canada's largest corporations and leading member
of the country's petroleum industry. The company is a major producer of
crude oil and natural gas, Canada largest petroleum refiner, a key
petrochemical producer and a leading marketer with coast-to-coast
supply and retail service station networks.
Image with caption: "Imperial Oil Dartmouth Refinery (CNW Group/Imperial Oil Limited)". Image available at: http://photos.newswire.ca/images/download/20130619_C9404_PHOTO_EN_28172.jpg
SOURCE: Imperial Oil Limited
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