On 31 July last, I announced that the Irish National Petroleum Corporation and Tosco Corporation had signed non-binding heads of agreement for the sale of the Whitegate refinery and the Whiddy Island oil terminal. The National Oil Reserves Agency is not included in the terms of the sale.
In the interim, both principals have been working to move the initiative forward to a successful conclusion, and I understand that this ongoing process is currently on schedule. My Department and the Department of Finance, with the assistance of external consultants, continue to monitor the situation closely to ensure that shareholder concerns are adequately addressed as the negotiations proceed.
Under the terms of the Government's decision of 23 February 1999 which initiated the current process, the search for proposals and the assessment of submissions was a matter in the first instance for INPC. No particular type of proposal was ruled out by the Government decision, nor was there a preference expressed for one kind of solution rather than another. Following an extensive search which was carried out by the company on that basis, four definite proposals were submitted to the INPC. In the event, the INPC board recommended the submission received from the Tosco Corporation. That recommendation was subsequently endorsed by the consultants who are advising me on the proposed deal, which involves a commitment by a major oil company to operate the facilities in question for a minimum of 15 years.