Shell to sell Geelong refinery (AUS)

The future is uncertain for more than 400 Shell employees after the company announced it is selling its refinery in Geelong in Victoria.

A year ago, the general manager of the Shell refinery assured the community that he had no plans to close the Geelong operation.
Today Shell Australia announced not a closure but a sale, which it hopes can take place by the end of 2014.

The announcement puts the jobs of around 450 people on site and hundreds of contractors in limbo, and also threatens the supply of fuel to Victoria and South Australia.
The vice-president of Shell Australia's downstream operations, Andrew Smith, says he regrets the uncertainty the sale creates for the company's employees.
"Naturally this announcement will be difficult for the hard-working people of the refinery," he said.

"Shell is committed to a timely sale process and during this time providing employees with counselling, employees with changed management support and a commitment to ongoing communication."

Australia's remaining refineries:

ExxonMobil Altona Refinery, VIC: Posted a loss in 2011 because of low margins and a big investment load

BP Bulwer Island Refinery, QLD: undergone several expansions, employs 340 people

Caltex Lytton Refinery, QLD: remaining open with a focus on operational and financial performance

BP Kwinana Refinery, WA: Australia's largest remaining refinery, employs 380 people

Caltex Kurnell Refinery, NSW: due to close 2014, 630 job losses

Shell Clyde Refinery, NSW: due to close this year, about 450 job losses

Shell Geelong Refinery, VIC: likely to be sold, 400 jobs under a cloud

"It's an uncertain time and there is a lot more that is unknown at the moment than is actually known," he said.
"Our only priority and concern at this point is the lives and jobs of our members and their families and community."
Mr Davis says he is not confident a buyer will be found and is concerned the plant could close.
"The Australian oil industry is obviously going through a rationalisation, that's a polite way of saying they're closing refineries and sacking employees," he said.
"We are desperately concerned to try and make sure the Geelong refinery remains a viable option."
The union says it is in the national interest that the refinery remain operational, or Australia could become increasingly exposed to interruptions in the international supply chain.
Victorian Premier Denis Napthine says Shell management told him they want to sell the refinery as a going concern so there would be ongoing demand for the skilled workers at the site.
"Victoria has proved time and time again that it is a great place to invest and the Coalition Government is giving Shell its full support in achieving a successful outcome," he said.
"I have asked to be kept informed by Shell throughout this process."
The refinery supplies 50 per cent of Victoria's fuel and 30 per cent of South Australia's fuel.
"If this refinery is closed and the sale is not achieved then Australia will become more dependent on imported fuel and more dependent on price spikes on the world market and less self-sufficient in its own energy needs and that would be terrible," Mr Davis said.