Italy aware of several potential bidders for Lukoil-owned refinery

Minister Adolfo Urso told Reuters any agreement to sell the plant will be subject to government scrutiny under the so-called golden power regulation and Rome was ready to set out commitments for any potential buyer, including on protecting the environment. He said up to 10 buyers were interested in taking over the plant, but declined to name any of them.

(Adds background) ROME, Dec 15 (Reuters) -

Rome is aware of several potential bidders, both domestic and international, for a Lukoil-owned refinery based in Sicily, the Italian industry minister told Reuters on Thursday. The Lukoil ISAB plant on the island refines a fifth of Italy's crude and directly employs about 1,000 people in an economically depressed area in the country's southernmost region.

The ISAB refinery has relied mainly on Russian crude in recent months and is now unable to take its mainstay feedstock after a European Union embargo came into force on Dec. 5. Minister Adolfo Urso told Reuters any agreement to sell the plant will be subject to government scrutiny under the so-called golden power regulation and Rome was ready to set out commitments for any potential buyer, including on protecting the environment.

He said up to 10 buyers were interested in taking over the plant, but declined to name any of them. Reuters reported last week that U.S. private equity firm Crossbridge, which is supported by Swiss commodity trader Vitol, is close to a deal worth just under 1.5 billion euros ($1.6 billion) for the sale of ISAB.

Urso declined to comment on reports over negotiations with Crossbridge. Earlier this month, the government set out a scheme that would make it possible to place the refinery in the hands of trustees, in an effort to avoid it being shut down because of the embargo on Russian oil.