Varo Energy plans to acquire an additional 10% stake in the Bayernoil refinery from co-shareholder BP Europa.
Additionally, Varo will purchase BP's polymer modified bitumen plant located at the Vohburg site with its storage capacity, as well as the 9% stake the company holds in Transalpine Oelleitung, which transports crude oil from the port of Trieste to refineries in Central Europe.
Once the transaction is complete, Varo will hold 55% of the shares in Bayernoil, which has a total refining capacity of 220,000 barrels per day, split between the Vohburg and Neustadt sites. Bayernoil will be jointly managed by its remaining shareholders; Varo, ENI and Rosneft. Once complete, Varo's total refining capacity will increase to 189,000 barrels per day across its two refineries in Cressier, Switzerland and Bayernoil, Germany.
Varo CEO Roger Brown says: 'The Bayernoil refinery is a key strategic asset for Varo's operations in Germany and beyond. Investing in additional shares will offer greater flexibility and help us further optimise our logistics to continue to best serve our customers across multiple borders.'