(Updates with Murphy response in 3rd and 4th paragraphs.)
LONDON, June 29 Murphy Oil has agreed to
sell its Milford Haven refinery in south west Wales to oil
entrepreneur Gary Klesch, the local member of parliament told a
"I am delighted with the breakthrough in negotiations over
the sale of the Murco oil refinery in Milford Haven," Stephen
Crabb, MP for the area where the refinery is located, told the
A Murphy Oil spokesman said a deal had yet to be signed.
"Murphy feel that solid progress has been made in
negotiations, but caution that substantial work remains to done.
If the past has taught us anything, it is that these sales are
especially challenging and we are not assured of success," a
Murphy spokesman said.
The plant is currently not buying crude oil, but recycling
oil products to keep it operational.
Murphy started a 45-day consultation period in April with
staff and unions, which it has left open since it lapsed in May.
A source told Reuters on Thursday that any deal would likely
value the plant at close to zero, but any sum paid for the plant
would include oil inventories.
The Klesch Group is a global industrial commodities
business, with three divisions specialising in the production
and trading of chemicals, metals and oil.
Nobody at Klesch was immediately available to comment on
The roughly 500 workers at the plant will be relieved if the
deal does go through, as it was widely thought the plant was
heading for closure. Refineries in Europe are being squeezed by
high crude prices and low refining margins due to weak demand
(Reporting by Simon Falush; editing by Keiron Henderson)