Petroplus Holdings AG (SWX:PPHN) today announced that it has completed its purchase of the Petit Couronne and Reichstett Vendenheim refineries, located in France from Societe des Petroles (Shell). The Petit Couronne Refinery and the Reichstett Vendenheim Refinery have total nameplate capacities of 154,000 barrels per day and 85,000 barrels per day, respectively.

The net purchase price, including estimated inventory and other adjustments, totaled approximately $785 million. Inventory barrels included in the purchase were less than originally anticipated as a result of a processing agreement. For the remainder of 2008, Petroplus has entered into a processing agreement with Shell for approximately half of the Petit Couronne refinery's total throughput. In accordance with the processing agreement, Shell will provide certain crude oils and feedstocks while Petroplus will provide Shell a slate of lube oil base stocks and other refined products. In exchange for which, Petroplus will be paid a processing fee of approximately $5.50 per barrel. The major portions of the processing agreement will end on December 31, 2008, with certain lube oil processing arrangements to continue until 2011.

Commenting on the acquisition, Robert J. Lavinia, Chief Executive Officer of Petroplus, remarked, "We are very pleased to be adding these two assets and a professional group of refining personnel to our company. Both the Petit Couronne and Reichstett refineries have been part of a world class organization for many years and we greatly anticipate their contribution into our expanding refining system. We expect to incorporate the refining knowledge and expertise of our newest Petroplus employees to further elevate the best practices in safe, reliable operations at all of our locations."

Commenting on the financing for the acquisition, Karyn F. Ovelmen, Chief Financial Officer of Petroplus, said, "The net purchase price was financed with cash on hand, drawings under our working capital facility and proceeds from the issuance of convertible bonds. Following the acquisition our net debt to net capitalization is about 40% which is slightly better than our original expectations. Our debt outstanding is approximately $1.8 billion which consists mainly of our $1.2 billion of long-term senior notes and $500 million of long-term convertible bonds, which leaves Petroplus with tremendous short-term liquidity and flexibility." Ms. Ovelmen continued, "By adding an additional 38% of refining capacity, with a focus on middle distillate production, to our system, these refineries represent another significant increase to the earnings and cash flow potential of Petroplus. Consistent with our disciplined growth and capitalization strategy, immediately following the acquisition, we continue to maintain a healthy balance sheet and a strong liquidity position."

Petroplus Holdings AG is the largest independent refiner and wholesaler of petroleum products in Europe. Petroplus focuses on refining and currently owns and operates seven refineries across Europe: the Coryton refinery on the Thames Estuary in the United Kingdom, the Ingolstadt refinery in Ingolstadt, Germany, the Belgium Refining Company refinery in Antwerp, Belgium, the Petit Couronne refinery in Petit Couronne, France, the Cressier refinery in the canton of Neuchatel, Switzerland, the Reichstett refinery in Alsace, France and the Teesside refinery in Teesside, United Kingdom. The refineries have a combined throughput capacity of approximately 864,000 bpd.