ExxonMobil has announced the closure of its Altona oil refinery plant in Melbourne, Australia, which is likely to put around 350 jobs at risk of redundancy.
This decision was taken after a review of the refinery, which started operations in 1949.
The review considered the competitive supply of products into the country, declining domestic crude oil production, future capital investments, as well as the impacts of these factors on operating earnings.
The refinery will be converted into an import terminal and will ensure ongoing fuel supply for Victoria.
This refinery, which caters to 50% of refined fuel requirements of Victoria, will continue to remain operational while the transition is undertaken to import terminal.
ExxonMobil Australia chairman Nathan Fay said: “We are grateful for the tremendous efforts by our employees to improve the viability of the operation.”
Abc.net.au reported that the company had informed its workers that this transition will begin in about six months.
United Workers Union (UWU) national secretary Tim Kennedy told ABC Radio Melbourne: “These are highly skilled workers, these are workers who are the best in their field in these types of skills, these energy skills in the world. Essentially, we have a country that doesn’t have an energy plan, doesn’t have a plan for how we transition to the energy systems we need in the future.”
Federal Energy Minister Angus Taylor deemed the decision as ‘extremely disappointing’.
Taylor said: “Our thoughts are with all of the refinery’s workers, their families and the local community businesses that will be impacted by this decision. The Australian Government expects ExxonMobil will provide whatever support is required to assist workers and the community during this difficult time.”
The refinery has a daily production of up to 14.5 million litres of refined products, which is sufficient to fill more than 330,000 cars.
According to 7news.com.au report, this is one of the last remaining oil refineries of ExxonMobil in Australia.
