Ludoil completes the acquisition of a 51 per cent stake in Isab: 1.3 billion in investment in Priolo

The Italian company Ludoil has taken control of the Isab refinery in Priolo (Syracuse). The company owned by the Ammaturo family has finalised the purchase of a 51 per cent stake from the Cypriot firm Goi Energy, concluding a deal announced on 13 May which had been subject to government scrutiny under the Golden Power scheme. The antitrust scrutiny and the review required under the European regulation on foreign subsidies have also been concluded without any conditions being imposed.

Ludoil is taking over the industrial management of the complex, whose facilities are located between Priolo, Melilli and Syracuse. The press release puts the enterprise value of the entire Isab group at one billion euros: this figure represents the value of the company, whilst the price paid for the 51 per cent stake has not been disclosed. Financing for the transaction, backed by a SACE guarantee, was provided by BPER and UniCredit as global coordinators and by MPS. BPER also acted as the agent bank.

The industrial phase is now getting under way with the plants. Ludoil’s plan envisages investments of around 1.3 billion over the next five years, earmarked for both the conventional refinery and biofuels. On the former front, the group intends to recommission and modernise a number of decommissioned units, including the primary distillation and desulphurisation plants at the North site and the solvent deasphalting and thermal cracking plants at the South site. The stated aim is to increase processing capacity and the production of distillates with a lower sulphur content.

The second area concerns production conversion. In July, Isab launched co-processing at its North site, which involves the joint processing of traditional and organic raw materials in one of the existing units. The project aims to use non-food vegetable oils to produce bio-petrol, sustainable aviation fuel (SAF) and HVO, a biofuel that can be used as a substitute for diesel. In the initial phase, the existing plants will be used; dedicated units are planned for a later stage.

Ludoil has confirmed that the entire Isab workforce will be retained. According to the group’s estimates, the investment-related contracts will involve around 1,000 additional people over the five-year period across engineering, logistics and construction. Around 100 new technicians and skilled operators are expected to be required to manage the plants once they are fully operational.