ExxonMobil completes sale of French refinery, chemicals business to North Atlantic

ExxonMobil has finalized the sale of its French refinery, retail and chemicals businesses to Canada's North Atlantic, the companies announced Nov. 28.

A statement from North Atlantic, a Canadian fuel retailer, confirmed its acquisition of Esso SAF and ExxonMobil Chemical France, finalizing a sale after six months of exclusive talks.

The deal transfers ownership of an 82.89% controlling interest in Esso SAF, which operates France's Gravenchon refinery, as well as a100% stake in the company's separate chemicals business. As of Nov. 28, Esso SAF will become North Atlantic Energies, and the company will conduct a mandated auction for the remaining shares in the business.

For North Atlantic, the acquisition marks a first step into the European market and advances plans to grow its global asset base. After almost four decades operating in the North American retail sector, the company is set to add 750 fuel stations to its existing base of 110, as well as its first refining asset.

A statement from Simon Fenner, President of North Atlantic France, called the 240,000 b/d Gravenchon refinery a "world-class industrial platform" and vowed to consolidate its position with new investment. The refinery was first constructed in 1933 and is the second-largest in France.

The new owner has pledged to future-proof the site by transforming it into a "green energy hub" with new low-carbon fuels capacity and renewable power integrations. Located on the coast in Normandy, northwest France, Gravenchon is a strong candidate to serve energy-intensive industries like AI data centers, the company said.

Existing North Atlantic retail sites in Eastern Canada and French territories Saint Pierre and Miquelon also offer "natural synergies" for Gravenchon, the company has said, supporting strong utilization rates and future trade diversification. In a previous statement, ExxonMobil said the deal will include commitments to ensure continuous crude supply to the French refinery as well as lasting purchase agreements.

Through its operations at Gravenchon and a separate lubricants plant, Esso estimates that it accounts for roughly 20% of active refining capacity in the country. According to analysis from S&P Global Energy CERA, the refinery produces roughly 60,000 b/d of diesel/gasoil, 55,000 b/d of gasoline and 14,000 b/d of jet fuel, representing a disproportionate slant toward light ends relative to French consumption.

It sources its crude from the nearby port of Le Havre, which has recently imported around 30% of its oil from the US, followed by around 20% each from Nigeria and Norway.

ExxonMobil retreat

The refinery sale signals a steady retreat by ExxonMobil from its European refining assets, as it has joined rival oil majors in refocusing its downstream portfolio in the US and Asia.

In 2024, the Texas-based energy company began significantly downsizing its French downstream business, closing its chemicals operations in Gravenchon and later selling its 140,000 b/d Fos-sur-Mer refinery to Rhone Energies, a Trafigura-backed joint venture.

The Gravenchon steam cracker closure was seen as the first signal of fading investment appetite in the French site, where integrated petrochemicals operations were widely seen as a long-term strategic advantage in an increasingly competitive refining market.

The sale leaves ExxonMobil with just four remaining refinery stakes in Europe: Antwerp, Rotterdam, Fawley, and Germany's MiRO. Outside the continent, it operates ten refineries with a total capacity of 3.3 million b/d, adjusted by ownership stake. Between 2000 and 2024, the company slashed its European refining capacity by around a third, closing its Slagen plant in Norway and selling its Italian assets.

Competitive challenges in Europe, including high energy costs and emissions taxes, have recently seen several international oil companies shrink their operations in the region, often handing assets to global trading companies, smaller energy players or private equity houses.

The continent's refiners have recently profited from a surge in refining margins linked to sanctions risks, drone attacks in Russia and cheap crude. However, in the long term, analysts warn that survival will depend on capital-intensive decarbonization investments and new regulatory protections against cheap imports.