Concerns raised over Wales' oil refineries

Fears have been raised over the future of Wales' remaining two oil refineries. The US company that runs the oil firm Murco and owns the Milford Haven oil refinery in Wales, posted a huge loss in the last quarter of 2013, which has prompted it to announce that it is looking at the "disposition" of its refinery operations within the UK.

The firm posted a $105 million (£63 million) loss at the end of last year, causing fears that the oil refineries in Wales will end up closing. The Milford Haven oil refinery currently employs over 400 people, meaning that its closure would be a blow to local communities. 

Murco put the refinery up for sale three years ago but has, as of yet, been unable to find a buyer. This has resulted in the company bringing down the oil refinery's value by $73 million last year, classifying the site as "discontinued operation". This increases the chances of the site undergoing closure, resulting in massive job loss.

However, Murphy Oil, Murco's owner, announced in November of last year that it would not be closing the site if a buyer is not found. This comes after the company said that if it was unable to sell the site, it would be turned into a storage facility. While this would be preferable to the closure of the site, it would likely lead to some loss of jobs.

The company has been asked for more clarity over what it means by checking the disposition of the oil refinery.

Rebecca Evans, assembly member for Mid and West Wales, said to the Milford and West Wales Mercury: “Murphy Oil has said that it expects to complete the 'disposition' of the refinery at Milford Haven by the end of the year. I am seeking urgent clarity from the company as to what that means.

“Assurances were given in November that the refinery would not close – and yet three months later the company is talking about 'disposition'. If disposition means a sale, then that could be positive as it would end a protracted period of uncertainty for the 400-strong workforce. However, if disposition means closure, then that would be a devastating and terrible blow to Milford Haven and the surrounding area.”