Italy's Ludoil buys Sicilian refinery as war squeezes Europe's fuel supply

By Francesca Landini

MILAN, May 13 (Reuters) - Italian energy group Ludoil said on Wednesday it had signed a deal with Cypriot private equity fund G.O.I. Energy to buy Sicilian oil refiner ISAB, as European fuel supply remains disrupted by the conflict in the Middle East.

The Iran war has laid bare Europe's dependency on the Middle East for the supply of jet fuel and other refined products.

"The acquisition will see ISAB evolve from a traditional refinery into an energy company, underpinning competitiveness, security of supply and the development of new energy value chains," Ludoil said in a statement.

The transaction is structured in two steps, with the first seeing Ludoil picking up a 51% interest, subject to several conditions including clearance from the Italian government under its so-called golden power regime, Ludoil said. It did not say how much Ludoil would pay for the stake and did not immediately reply to a request for further details.

ISAB is considered a strategic asset by the government as it accounts for more than 20% of Italy's refining capacity.

G.O.I. Energy bought the refiner from Russian oil producer Lukoil's LKOH.MM in 2023.