Russia prepared for deeper cooperation with Iran

Russia's Federation Council is prepared to facilitate a deeper mutually beneficial cooperation between Russia and Iran, Federation Council Chairperson Valentina Matviyenko said in a telegram to chairman of Iran's Islamic Consultative Assembly Mohammad Bagher Ghalibaf on Wednesday congratulating him on his election to the post, as per Interfax.

"We highly value your warm attitude toward Russia and stand ready to facilitate a deeper mutually advantageous bilateral cooperation to the benefit of our nations and the development of a constructive inter-parliamentary dialogue based on principles of mutual respect, confidence, and consideration of each other's interests," Matviyenko said.

The Federation Council also looks forward to continued productive work between Russia and Iran on international platforms in finding effective solutions on key items of the regional and global agenda, Matviyenko said.

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Russian officials are discussing the idea of raising gas prices for industrial categories of consumers, including energy, by 10% in the first and fourth quarters of each year, as per Interfax.

"The Energy Ministry just yesterday announced that they are discussing raising the gas price to the FAS price by a factor of 1.1, namely by 10%, in the first and fourth quarters of each year," Dmitry Vologzhanin, director of the Council of Energy Producers, said on Wednesday during a meeting of the Russian Union of Industrialists and Entrepreneurs (RSPP) commission on energy.

Several Interfax sources familiar with the discussion confirmed that the idea is under discussion, and that it concerns a possible increase in prices for all categories except the population.

It is not yet clear from what period the decision could be reached.

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ExxonMobil's 250,000-bpd refinery in Joliet, Illinois (U.S.) brought the catalytic cracker unit back to full capacity, IIR Energy said, as per Hydrocarbonprocessing.

The refinery ran its 98,000-bpd catalytic cracker unit at approximately 50% capacity after experiencing unspecified mechanical issues last week.

A spokesperson at ExxonMobil did not respond to a request for comment.

We remind, ExxonMobil France Holding has entered into exclusive negotiations with North Atlantic France SAS for both the proposed sale of its 82.89% majority shareholder interest in Esso Societe Anonyme Francaise SA as well as the proposed sale of ExxonMobil Chemical France SAS.

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Following extended technical, commercial and strategic evaluations UPM plans to discontinue the development of its potential second biomass-to-fuels refinery at the Port of Rotterdam, as per Hydrocarbonprocessing.

As a result, UPM plans to halt all engineering work related to the CAPEX investment in Rotterdam and to withdraw from all site-related commitments associated with the Rotterdam investment.

At the same time, UPM will continue to seek growth in biofuels by advancing the development of proprietary technologies enabling the extension of feedstock options to other forms of competitive and sustainable biomass and the work related to the qualification and commercialization of Crude Tall Oil (CTO)-derived UPM biofuels for jet engine fuels.

”Renewable fuels and renewable chemicals are the central elements of UPM’s long-term growth in decarbonization solutions. The Lappeenranta biofuels biorefinery will remain the nucleus of our growing biofuels platform”, says Harald Dialer, Executive Vice President, UPM Biorefining and Technology.

Aligned with this strategic direction, UPM is focusing on three targeted growth areas in its biofuels business:

Evaluating the potential to debottleneck the Lappeenranta Biorefinery in order to capture low capex expansion opportunities and further leverage the strong market performance of CTO-derived biofuels.
Enabling the qualification of CTO-derived UPM biofuels as Sustainable Aviation Fuel (SAF). This strategic direction is supported by successful SAF trials conducted with Austrian aircraft manufacturer Diamond Aircraft using Austro Engine propulsion, and by continued progress in the technical acceptance process at the American Society for Testing and Materials (ASTM), where results from trials and stakeholder reviews have been consistently positive.
Continuing feedstock technology development to qualify and enable the use of additional competitive and sustainable biomass, supporting the cost-efficient production of high-quality biofuels for both road and aviation applications.
“We continue seeing strong long-term market potential for biomass-based fuels, especially in Europe, where greenhouse gas (GHG) reduction commitments continue driving the need for sustainable alternatives to fossil fuels across transport modes but specifically in road and aviation”, says Harald Dialer. “Our biofuels portfolio is well-positioned through our access to strategic feedstocks, its superior GHG savings potential and strong regulatory acceptance. We are in an advanced position to deliver scalable commercial growth with sustainable biofuels.”

We remind, ExxonMobil's 250,000-bpd refinery in Joliet, Illinois (U.S.) brought the catalytic cracker unit back to full capacity, IIR Energy said. The refinery ran its 98,000-bpd catalytic cracker unit at approximately 50% capacity after experiencing unspecified mechanical issues last week.

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ExxonMobil France Holding has entered into exclusive negotiations with North Atlantic France SAS for both the proposed sale of its 82.89% majority shareholder interest in Esso Societe Anonyme Francaise SA as well as the proposed sale of ExxonMobil Chemical France SAS, as per Hydrocarbonprocessing.

With the exception of those part of the previously announced redundancy plan, all of the approximately 1,350 employees in France will be retained and remain on the same employment terms and conditions.

The acquisition price of the Controlling Stake would correspond to a price of €149.19 per Esso SAF share before any distribution by Esso SAF, or a price of €32.83 per share, assuming a total distributed amount of €116.36 per share before the completion of the proposed acquisition (see below) and before application of the adjustments described below.

This price per Esso SAF share was set on the basis of an amount of cash as of December 31, 2024 not yet distributed equal to €1,495,716,000 and a base price for 100% of Esso SAF shares equal to €422,000,000.

This acquisition price would be subject to the following adjustments (based on 100% of the capital):

a downward adjustment to the amount of cash that Esso SAF would distribute before the completion of the Controlling Stake sale transaction (see below);
an upward adjustment by a “ticking fee” mechanism corresponding to the amount of interest calculated (i) on a first basic amount of €362,000,000 at the European short-term interest rate (€STR) increased by 2% per year between March 2, 2025 and the date of completion of the transaction, and (ii) on a second basic amount of €950,000,000 at the rate of 2.40% per year between March 2, 2025 and the date of completion of the transaction;
a downward or upward adjustment to reflect changes in the value of Esso SAF's inventories, in an amount equal to the difference between the value of ten million barrels of crude oil as of December 31, 2024 and the price of that same number of barrels of crude oil on the date of completion of the transaction.
The price of the sale of the activities and assets to be sold by Esso SAF as part of the carve-out described below would increase the amount of available cash of Esso SAF and will be taken into account in the adjustments described above.

The final price for the acquisition of the Control Block would be definitively fixed before the completion of this transaction and will be the subject of public information in due course.

Given the level of excess cash available, ExxonMobil has agreed to use its reasonable efforts to ensure that Esso SAF makes, prior to the completion of the transaction, an additional distribution of up to €63.36 per Esso SAF share (in addition to the distribution of a dividend of €53 per Esso SAF share submitted to the Ordinary General Meeting convened on June 4, 2025 and to be paid - subject to approval by said meeting - on July 10, 2025).

The parties have also informed Esso SAF that members of the ExxonMobil group are expected to acquire certain trademarks and other intellectual property rights that are part of Exxon Mobil Corporation's overall brand portfolio and are currently held by Esso SAF for historical reasons, as well as the lubricants and specialty products marketing businesses currently operated by Esso SAF. As indicated above, the price paid for these transactions will increase Esso SAF's available cash flow and will be reflected in the price adjustments described above.

Esso SAF has also been informed of ExxonMobil's intention to sell its entire stake in ExxonMobil Chemical France SAS ("EMCF") to North Atlantic.

The proposed transaction will be submitted to the competent staff representative bodies in accordance with applicable legal provisions.

If the definitive transaction documents are signed, the completion of the acquisition of the Controlling Stake would be subject to obtaining certain regulatory authorizations as well as the finalization of certain financing agreements, and is expected to occur during the last quarter of 2025.

Following the completion of the sale of the Controlling Block, Esso SAF is contemplated to enter into long-term agreements with certain ExxonMobil affiliates, including (i) certain agreements to ensure the continuity of crude oil supply to the site, the continued purchase and sale of raw materials and manufactured products (fuels, lubricants and specialty products) with ExxonMobil affiliates and (ii) certain intellectual property agreements for the continued operation of the refinery units and the marketing of gasoline under the Esso brands in France.

In accordance with applicable laws, following the proposed acquisition of the controlling interest in Esso SAF, North Atlantic would file a mandatory tender offer for the remaining shares of Esso SAF on the same financial terms as the block acquisition (the “Offer”). If the legal conditions are met at the end of the Offer, North Atlantic would request the implementation of a squeeze-out procedure. The tender offer is expected to be filed during the first quarter of 2026.

In this context, the Board of Directors of Esso SAF should issue a reasoned opinion on the Offer and its consequences for Esso SAF, its shareholders and its employees. This reasoned opinion would be issued in light of the report of an independent expert appointed by the Board of Directors, which would include an opinion on the price offered in the context of a possible mandatory squeeze-out.

Esso SAF has acknowledged the proposed transaction, including North Atlantic's intention to maintain employment, existing compensation, and benefits, and is ready to work with North Atlantic, employee representative bodies, and all relevant parties. Esso SAF remains fully committed to continuing to operate in a safe and reliable environment and to continuing to supply its customers without interruption.

“ExxonMobil has been operating in France for over 120 years and we plan to maintain a significant commercial presence with the Esso brand at around 750 retail sites across the country,” said Tanya Bryja, senior vice president of ExxonMobil Product Solutions. “France remains an important market for us, and we will continue to support customers with sales of chemicals, finished lubricants, base stocks, synthetics, and other specialty products as well.”

“This is a pivotal moment for North Atlantic as we enhance our transatlantic presence and commitment to energy security through innovative energy solutions aligned with global energy needs,” added Ted Lomond, President and CEO of North Atlantic. “We are eager to consolidate Gravenchon’s role as a vital center of French energy and industry for decades to come and grow North Atlantic into a premier transatlantic energy company.”

ExxonMobil continually evaluates its business globally and the proposed sale is aligned with its business strategy.

Europe is an important region for ExxonMobil where there will continue to be a meaningful presence.

Esso S.A.F. and ExxonMobil Chemical France remain fully committed to continuing safe, reliable operations in France and to meeting all supply obligations for their customers through the transition.

The contemplated transaction will be submitted to the relevant employees’ representative bodies, in accordance with French law. Completion of the acquisition of the 82.89% interest in Esso S.A.F. and 100% of EMCF is subject to the satisfaction of customary regulatory conditions precedent and finalization of certain financial arrangements and is expected to occur in the fourth quarter of 2025.

We remind, ExxonMobil's 250,000-bpd refinery in Joliet, Illinois (U.S.) brought the catalytic cracker unit back to full capacity, IIR Energy said. The refinery ran its 98,000-bpd catalytic cracker unit at approximately 50% capacity after experiencing unspecified mechanical issues last week.


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