UPDATE 1-Phillips 66 may shed some non-US refineries -executive

Thu Mar 7, 2013 12:34pm EST

HOUSTON, March 7 (Reuters) - Phillips 66 may shed its non-core refinery interests in Europe and Asia, an executive told analysts on Thursday, mentioning three plants that were either small or in markets where the company saw no growth opportunities.

An exit from refineries in Ireland, Germany and Malaysia would leave the company, split in 2011 from upstream sister company ConocoPhillips, with just one plant, in Britain, outside of its domestic market of the United States.

Larry Ziemba, executive vice president of refining, projects and procurement, said Phillips 66's 47 percent interest in the 170,000 barrels per day (bpd) Melaka, Malaysia, refinery may be up for grabs.

"There's not a lot of growth opportunities there and it might be worth more to (joint venture partner) Petronas or someone else," Ziemba told analysts at a Merrill Lynch 2013 refining conference in New York.

Also potentially for sale are the 71,000 bpd Whitegate refinery in Cork, Ireland, which Phillips 66 fully owns and its 18.75 percent stake in the 300,000 bpd Mineraloelrafnerie Oberrhein GmbH refinery in Southwest Germany, Ziemba said.

Ziemba, whose job it is to ensure Phillips 66 gets the right feedstock as an oil boom changes the supply landscape in North America, outlined a number of initiatives that should ease crude deliveries to refineries across the country.

He said Phillips 66 may build a rail rack to increase shipments of cheaper U.S. inland and Canadian heavy crude to its 100,000 bpd Ferndale, Washington state refinery to supplement the 20,000 bpd it already receives through a third-party arrangement.

The company may also offload Canadian heavy crude in Washington state and then ship it to Phillips 66's two California refineries.

"We're looking at a rail rack in Ferndale to supplement that volume and possibly to offload heavy Canadian crude and put those on a ship to be able to deliver to our Californian refineries," he said.

The company has projects under way at the docks for those plants to enable such shipments, he said.