Martin Wainwright

Monday 10 August 2009 20.55 BST

Britain’s second biggest oil refinery – employing 800 full-time staff at the Stanlow site near Ellesmere Port in Cheshire – could be sold off by the Shell oil group.

The company confirmed last night that a review of the plant’s ownership was under way, but denied that there were any plans to close the 173-acre facility, which has processed oil for 60 years and accounts for roughly 20% of Britain’s petrol production.

Competitors – including the Libyan National Oil Company, in partnership with the Indian mobile phone firm Essar – are among the potential buyers of the plant, which may be auctioned with two Shell refineries in Germany.

Shell is cutting back on refining because of the recession and excess capacity in the market. The company warned earlier this year of potential job cuts in its global workforce, following a fall in second quarter profits to £1.4bn, compared with £22bn for the whole of last year.

In its statement, the firm said that the Stanlow review would “determine the best long-term options for the refinery, and associated local marketing businesses.”

Employees have been told about the exercise, including contract workers who were involved in a series of walkouts earlier this year, in sympathy with colleagues on strike at the Total refinery on the river Humber.

“Shell has an obligation to ensure best value is being achieved with all its assets, and this involves talking with third parties from time to time,” said the firm from its UK headquarters in London. “All long-term ownership options are being considered for Stanlow, which could include the sale of the refinery.

“If a deal is pursued, the refinery would be sold as a going concern. If no deal is pursued, Stanlow will be retained in the Shell portfolio. There are no plans to close the refinery or associated local marketing businesses.”

The other businesses are Shell’s commercial and bulk fuel operations at Stanlow, and marine operations which assist tankers arriving at Ellesmere Port.

The Anglo-Dutch group has cut back severely on costs as fuel demand continues to fall. Internal savings in the first half of 2009 totalled £426.8m according to the six-monthly statement in July from the recently appointed chief executive, Peter Voser.

Shell was among companies irritated by wildcat strike action in February and June in support of construction workers involved in the long dispute over foreign labour at Total’s Immingham plant.

Both walkouts involved some 450 maintenance contractors at Stanlow, but production at the refinery was not affected.

GUARDIAN ARTICLE

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.