Thursday, February 16, 2012 9:54:36 PM
OT: High dollar may force Caltex refinery closures [in Sydney]
AM By Michael Edwards .. Updated February 17, 2012 11:25:00
The Kurnell refinery in Sydney is one of the facilities earmarked for closure. (Ian Waldie: Getty Images)
http://www.abc.net.au/news/2012-02-17/the-caltex-kurnell-oil-refinery/3835820
Map: Australia .. http://maps.google.com/?q=-26.000,134.500%28Australia%20%29&z=5
Oil company Caltex is considering closing its two Australian refineries as it reviews its operations at Kurnell in Sydney and Lytton in Brisbane.
The facilities refine almost a third of Australia's crude oil and employ 800 full-time workers and about 600 contractors.
But their future is now under a cloud as the company faces pressures from the rising Australian dollar and competition from larger Asian refineries.
Yesterday, Caltex Australia reported to the stock exchange that it had written down the value of the refineries by $1.5 billion, partly because of the effect of the strong dollar.
Spokesman Sam Collyer says the review is expected to be finished in six months and he admits that one of the steps being considered is closing the facilities.
"We are looking at a range of options and that includes investing in the refineries right through to closure or turning them into terminals," Mr Collyer said.
Market analysts suspect the company may have already made its mind up to close the facilities but Caltex says that is just speculation.
"We have been very up-front with our employees about the work that we are currently doing," Mr Collyer said.
"We are assessing the role of our refineries as part of the supply chain so there is no impact on the operations and we are hopeful that in the next six months, once we have completed that work, that we will be in a position to make an informed decision.
Australia has seven oil refineries. Shell's facility at Clyde, near Sydney, is due to shut its refining capacity next year.
Audio: Caltex considering closing refineries (AM)
Companies are finding it cheaper and more efficient to import refined oil products from Asia, says Craig Glasby, president of the Service Station Association.
"It is sometimes cheaper to get fuel direct from Singapore than it is to get the crude oil and refine it in Australia, so Caltex are just doing this because of pure economics," Mr Glasby said.
But Mr Glasby says there may be implications for Australia's fuel supply.
"That is a concern, that we won't be able to refine our own fuel, but I'm sure that the Federal Government will have something to say about that and they'll be talking to Caltex very quickly to see what can be done," he said.
Australia may be increasing its dependence on overseas refineries but Mr Glasby does not believe there will be any impact on fuel prices.
Topics: business-economics-and-finance, company-news, oil-and-gas, australia, lytton-4178, kurnell-2231
First posted February 17, 2012 09:56:05
http://www.abc.net.au/news/2012-02-17/caltex-to-close-refineries/3835784?section=business
AM By Michael Edwards .. Updated February 17, 2012 11:25:00
The Kurnell refinery in Sydney is one of the facilities earmarked for closure. (Ian Waldie: Getty Images)
http://www.abc.net.au/news/2012-02-17/the-caltex-kurnell-oil-refinery/3835820
Map: Australia .. http://maps.google.com/?q=-26.000,134.500%28Australia%20%29&z=5
Oil company Caltex is considering closing its two Australian refineries as it reviews its operations at Kurnell in Sydney and Lytton in Brisbane.
The facilities refine almost a third of Australia's crude oil and employ 800 full-time workers and about 600 contractors.
But their future is now under a cloud as the company faces pressures from the rising Australian dollar and competition from larger Asian refineries.
Yesterday, Caltex Australia reported to the stock exchange that it had written down the value of the refineries by $1.5 billion, partly because of the effect of the strong dollar.
Spokesman Sam Collyer says the review is expected to be finished in six months and he admits that one of the steps being considered is closing the facilities.
"We are looking at a range of options and that includes investing in the refineries right through to closure or turning them into terminals," Mr Collyer said.
Market analysts suspect the company may have already made its mind up to close the facilities but Caltex says that is just speculation.
"We have been very up-front with our employees about the work that we are currently doing," Mr Collyer said.
"We are assessing the role of our refineries as part of the supply chain so there is no impact on the operations and we are hopeful that in the next six months, once we have completed that work, that we will be in a position to make an informed decision.
Australia has seven oil refineries. Shell's facility at Clyde, near Sydney, is due to shut its refining capacity next year.
Audio: Caltex considering closing refineries (AM)
Companies are finding it cheaper and more efficient to import refined oil products from Asia, says Craig Glasby, president of the Service Station Association.
"It is sometimes cheaper to get fuel direct from Singapore than it is to get the crude oil and refine it in Australia, so Caltex are just doing this because of pure economics," Mr Glasby said.
But Mr Glasby says there may be implications for Australia's fuel supply.
"That is a concern, that we won't be able to refine our own fuel, but I'm sure that the Federal Government will have something to say about that and they'll be talking to Caltex very quickly to see what can be done," he said.
Australia may be increasing its dependence on overseas refineries but Mr Glasby does not believe there will be any impact on fuel prices.
Topics: business-economics-and-finance, company-news, oil-and-gas, australia, lytton-4178, kurnell-2231
First posted February 17, 2012 09:56:05
http://www.abc.net.au/news/2012-02-17/caltex-to-close-refineries/3835784?section=business
It was Plato who said, “He, O men, is the wisest, who like Socrates, knows that his wisdom is in truth worth nothing”
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