Italy conditionally approves Lukoil refinery sale to Cypriot firm G.O.I. Energy

Italy has given conditional approval to the sale of the Lukoil-owned refinery in Sicily to Cypriot private equity firm G.O.I. Energy, people familiar with the matter told Reuters.

The government has the power to review the transaction under a "golden power" regulation designed to shield industries deemed of strategic importance in sectors such as banking, energy, telecoms and health.

The ISAB plant owned by Russia's Lukoil refines 320,000 barrels of crude per day, accounting for a fifth of Italy's refining capacity, and directly employs about 1,000 people in an economically depressed area in the country's southernmost region.

Lukoil said in January it had reached a preliminary deal to sell the refinery to G.O.I Energy, paving the way for its first significant asset disposal since Russia's invasion of Ukraine.

With backing from commodity trader Trafigura, G.O.I. Energy - the energy arm of ARGUS Group, a private equity and asset management fund headquartered in Cyprus and regulated by the Cyprus Securities and Exchange Commission – has prevailed over several suitors for the refinery, including U.S. investment platform Crossbridge.

One of the sources said Italy's Cabinet had imposed severe conditions on the deal, without blocking it.

The government requested that jobs be protected and environmental standards maintained in the sale of the plant.

Rome also asked G.O.I. Energy to guarantee oil supplies from producing countries other than Russia, the sources added.

Italy's use of golden powers in most cases results in deals being approved with binding conditions to preserve the national interest.

There has been speculation that the United States was concerned over the sale of the ISAB refinery, located in Priolo, because the plant is only about 50 kilometres from a NATO base in Sigonella.

G.O.I Energy in a statement in February said that neither the company nor Chief Executive Michael Bobrov has any connection with Russia.

(Source: reuters.com, Reporting by Giuseppe Fonte; Editing by Gavin Jones, Mike Harrison and Leslie Adler)

About G.O.I. ENERGY

G.O.I. ENERGY represents a rapidly growing energy sector company that transforms the energy landscape in Southeastern Europe. G.O.I. ENERGY constitutes the energy arm of ARGUS New Energy Fund. ARGUS Group is an internationally acknowledged, and credible private equity and asset management fund, headquartered in Cyprus and regulated by Cyprus Securities and Exchange Commission. Through its cutting edge know – how, international experience, and unique specialisation, G.O.I. ENERGY redefines energy by placing sustainable growth, environment, and people at the core of its philosophy. Michael Bobrov, CEO of G.O.I. ENERGY, is also CEO and major shareholder of GREEN OIL ENERGY, which in turn is the major shareholder of BAZAN GROUP, one of the largest and most complex energy groups in Israel, operating the country’s largest integrated refining and petrochemical facility.

About ARGUS

ARGUS is a leading independent provider of global wealth management solutions in Cyprus, providing expertise in all asset classes, including private equity with focus in the energy and telecommunications sectors. With 20 years of proven track record and a high calibre team with demonstrated multi asset experience, ARGUS is characterised by its dynamic investment approach which combines long term strategic targets with tactical views to produce above average investment returns as well as its strict corporate governance and asset protection procedures.