Irving Oil owns the 320,000 barrel per day (bpd) capacity Saint John refinery in Canada, the 75,000bpd Whitegate refinery in Ireland, and also operates more than 900 fuel stations across Canada and the US
Irving retail site in the evening. (Credit: David Corkum/Irving Oil)
Canadian oil and natural gas company Irving Oil has initiated a strategic review of its operations, which includes an option for a complete or partial sale of the company.
Irving Oil owns the 320,000 barrel per day (bpd) capacity Saint John refinery in Canada and the 75,000bpd Whitegate refinery in Ireland.
The company also operates more than 900 fuel stations across Canada and the US.
Irving sells its fuel products across the US East Coast, which is the largest gasoline-demand market in the country, and home to the world’s busiest airports.
Irving Oil, in its statement, said: “Irving Oil has long been guided by a strong commitment to our employees, the people and businesses we serve, and the communities in which we live and work.
“No decisions have been made about where this strategic review may lead. Consideration will be given to a new ownership structure, a full or partial sale, or a change in the portfolio of our assets and how we operate them.”
“As we evaluate our options in the coming months, our focus remains on our team and continuing to safely deliver quality products and reliable energy for out customers and communities.”
According to a Reuters report, most of the US refiners have chosen to store their cash and return it to shareholders over the past year, rather than acquiring other refineries at scale.
Also, the potential buyers have to deal with the high cost of maintaining ageing refineries, amid low demand and competition from new facilities in the Middle East, Asia and Africa.
Irving Oil’s refinery in Saint John, New Brunswick currently the largest oil refinery in Canada.
More than 80% of its production is exported to the US, which accounts for 19% of the country’s gasoline imports and 75% of Canada’s gasoline exports to the US.
Commissioned in 1959, and redeveloped several times, Whitegate refinery is Ireland’s only oil refinery and addresses 40% of Ireland’s fuel requirements.
In 2020, Irving Oil scrapped the acquisition of North Atlantic Refining (NARL Refining), which owns a 135,000bpd oil refinery in Canada, without disclosing any reason.