Ludoil Capital, a wholly-owned subsidiary of Ludoil Energy, has signed a Sale and Purchase Agreement with GOI Energy to acquire its equity stake in ISAB, owner of the Priolo Gargallo refinery and related industrial, logistics and energy infrastructure in Sicily.

The transaction will take place in two phases, beginning with the acquisition of a 51 per cent stake.

Completion is subject to approval under Italy’s “Golden Power” framework for assets of national strategic importance, as well as antitrust and other regulatory clearances.

The Priolo Gargallo facility, located in south-eastern Sicily across the municipalities of Priolo Gargallo, Augusta and Melilli in the Province of Syracuse, is one of Italy’s largest refining complexes.

It has an authorised capacity of 20 million tonnes per year and a balanced operational capacity of 15 million tonnes per year, making it a critical asset for national energy security.

Through the deal, the refinery is set to return to Italian ownership, marking a significant shift in control of a strategically important energy asset.

The acquisition also signals the beginning of a broader transformation plan for ISAB, which will evolve into an integrated energy company spanning crude oil processing and advanced biofuels production.

Under Ludoil’s strategy, ISAB is positioned to become a key energy hub linking Europe, Africa, the Americas and the Middle East.

The business will operate under a shared-value model aimed at strengthening energy supply security while supporting long-term economic benefits for the surrounding region.

A major focus of the medium-term industrial plan is the development of advanced bio-processing capabilities.

This includes the gradual establishment of production lines for Hydrotreated Vegetable Oil (HVO), Sustainable Aviation Fuel (SAF), BioOil, second-generation bioethanol, and BioETBE. These initiatives align with European decarbonisation goals and the EU Renewable Energy Directive (RED III).

The transformation strategy also includes compliance with internationally recognised sustainability standards.

Alongside biofuel expansion, the site currently operates a 540 MW power and cogeneration facility and will incorporate an additional 20 MW of renewable energy capacity.

These investments are part of a wider effort to reposition the Priolo industrial district as a major energy transition hub in the Mediterranean, attracting growing investment in biorefining and clean energy infrastructure.

The agreement also confirms full retention of the existing workforce.

The refinery’s employees, described as a highly skilled engineering base built over decades in Sicily, will remain in place, with additional job creation expected through future expansion and partnerships with universities and research institutions.

Ludoil highlighted the complementarity between its commercial and infrastructure capabilities and ISAB’s industrial expertise, enabling full vertical integration across the energy value chain, from feedstock sourcing to distribution.

The group already operates coastal storage terminals, logistics infrastructure, fuel retail networks, and renewable energy assets including biomethane, solar, and wind.

Following completion, the transaction is expected to position Ludoil as Italy’s leading privately held multi-energy company, with projected annual revenues exceeding €10 billion ($12 billion), placing it among the country’s largest corporate groups and strengthening its role in Italy’s evolving energy system. -OGN/ TradeArabia News Service