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ISAB
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ISAB

320,000 b/d Priolo Gargallo refinery in Sicily, now being sold by GOI Energy to Ludoil.

ISAB is the 320,000 b/d Priolo Gargallo refinery in Sicily that GOI Energy agreed on 18 May 2026 to sell on to Ludoil Energy, a deal still stalled behind an unissued OFAC transaction licence and a final Golden Power order.

Last refreshed: 31 July 2026 · Appears in 1 active topic

Key Question

Why is the ISAB sale stuck in managed stasis despite seven consecutive OFAC licence extensions?

Timeline for ISAB

#20 25 Jul

ISAB is on the wrong sanctions clock

European Oil Markets
#21 23 Jul

Mentioned in: FAQ 1224 sets Lukoil sale conditions

European Oil Markets
#18 19 Jul

GL 131G's perimeter never included ISAB

European Oil Markets
#12 29 Jun

Mentioned in: OFAC opens an all-programmes delisting portal

European Oil Markets
#12 25 Jun

Continued operating past the 28 June GL 131F lapse under GL 131G cover

European Oil Markets: Seventh licence keeps ISAB Priolo open
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Background

ISAB (Industria Siciliana Asfalti e Bitumi), the refining complex at Priolo Gargallo near Syracuse in south-east Sicily, is owned by GOI Energy, which agreed on 18 May 2026 to sell it Onward to Ludoil Energy in two phases. The sale is stalled behind an unissued OFAC transaction licence and a final Italian Golden Power order, both still pending.

Built in the 1970s, ISAB passed through several ownership phases before Lukoil acquired a controlling stake in the mid-2000s via Lukoil International GmbH. Litasco, Lukoil's Swiss trading Arm, sold ISAB outright to GOI Energy in May 2023 with Italian government approval, ending Lukoil's ownership of the refinery. With nameplate capacity of roughly 320,000 barrels a day, ISAB processes predominantly sour and medium-grade Mediterranean crude into petrol, diesel, jet fuel, fuel oil and petrochemical feedstocks; its Augusta Bay location gives it direct access to Mediterranean shipping lanes.

For ISAB, Washington's Lukoil licensing track is mostly beside the point: the negotiation window OFAC keeps renewing has never named Priolo Gargallo, so nothing in it governs whether the refinery can change hands. What gates ISAB's own sale sits closer to home: a debt claim and Milan court seizure order, plus Italy's still-pending Golden Power sign-off and the transaction licence Ludoil needs to close its own purchase.

Key Issues
Sale gates

The refinery's gates sit closer to home

OFAC's General Licence series that keeps renewing monthly, most recently as GL 131H on 24 July, authorises Lukoil International GmbH to negotiate sales of assets it still owns; ISAB has never been named in it, because Litasco sold the refinery to GOI Energy back in May 2023. What actually gates ISAB's Onward sale to Ludoil Energy sits closer to home.

A roughly EUR150m debt claim and a September 2024 Milan court seizure order against GOI's ISAB share capital, plus Italy's still-pending Golden Power sign-off and the transaction licence Ludoil needs for its own purchase, are the live obstacles. Reporting that keeps tying the refinery's fate to Washington's Lukoil rollover has been chasing the wrong clock.

Common Questions

Reference

Where is the ISAB refinery located in Italy?
ISAB sits at Priolo Gargallo, a coastal industrial zone near Syracuse in south-east Sicily. Its Augusta Bay frontage gives it direct access to Mediterranean shipping lanes.Source: event_lookup
What is the capacity and crude diet of the ISAB refinery?
ISAB at Priolo Gargallo has nameplate capacity of approximately 320,000 Barrels Per Day. It processes predominantly sour and medium-grade crude from North Africa and the Middle East, producing petrol, diesel, jet fuel, fuel oil, and petrochemical feedstocks for the Mediterranean market.Source: European Oil Markets briefing
What is ISAB refinery capacity?
ISAB at Priolo Gargallo has a nameplate throughput capacity of approximately 320,000 Barrels Per Day.Source: European Oil Markets briefing
How big is the ISAB refinery in Sicily?
ISAB at Priolo Gargallo has nameplate throughput capacity of approximately 320,000 Barrels Per Day. It is one of the largest refineries on the Mediterranean and a swing supplier for southern European products markets.Source: European Oil Markets briefing
Will the ISAB Priolo refinery sale close before 25 July 2026?
The 25 July date was never ISAB's Deadline; it was when GL 131G, covering only the Carlyle-Lukoil international-asset negotiation, expired (superseded by GL 131H on 24 July 2026, which only tightened conditions for a Lukoil International GmbH sale). ISAB's own sale from GOI Energy to Ludoil still has no OFAC-licence Deadline: as of 31 July 2026 Italian Golden Power's final order, antitrust clearance and a dedicated OFAC transaction licence for the GOI-Ludoil deal remain outstanding, and the 2024 Milan seizure order still stands. We could not verify whether Italian-language sources show any movement on Golden Power or the Milan court since.Source: European Oil Markets briefing
What happens to ISAB if the OFAC deadline is not met?
This conflates two separate processes. The Lukoil-only OFAC negotiation track, now General Licence 131H (issued 24 July 2026, alongside an amended FAQ 1224 setting conditions for any future Lukoil International GmbH sale), governs only Carlyle's negotiation for Lukoil's other international assets and excludes ISAB. ISAB's own sale from GOI Energy to Ludoil is gated instead by Italian Golden Power final approval, antitrust clearance, and a distinct OFAC transaction licence for that specific deal, none of which had been issued as of 31 July 2026.Source: OFAC General Licence series
Who owns the ISAB refinery in Sicily?
GOI Energy owns ISAB, having bought it from Lukoil's Litasco in May 2023. GOI agreed on 18 May 2026 to sell it on to Ludoil Energy. The sale needs Italian Golden Power final clearance (conditional approval given 4 June 2026, antitrust review still pending) and a separate OFAC transaction licence for the GOI-Ludoil deal. It does not fall under General Licence 131G, which covers only Lukoil International GmbH and its 50%+ subsidiaries and names neither ISAB, Priolo Gargallo nor Italy.Source: European Oil Markets briefing
What is Golden Power and why does it apply to ISAB?
Golden Power is Italy's national-security screening regime for foreign acquisitions of strategic assets. ISAB qualifies because it supplies a substantial share of Italy's domestic refined products. Italy signalled conditional approval for Ludoil's acquisition on 4 June 2026.Source: European Oil Markets briefing
What does OFAC General Licence 131F cover for ISAB?
It doesn't. GL 131F, and its successor GL 131G (25 June-25 July 2026), authorise negotiation only for Lukoil International GmbH and entities in which it holds a 50%+ stake. Neither licence names ISAB, Priolo Gargallo or Italy: Litasco sold ISAB to GOI Energy in May 2023, and GOI's Onward sale to Ludoil Energy is governed separately by Italian Golden Power review and its own OFAC transaction licence.Source: European Oil Markets briefing
Why has the Lukoil ISAB sale not closed after six OFAC extensions?
The premise is out of date: ISAB has not been a Lukoil asset since Litasco sold it to GOI Energy in May 2023. GOI's Onward sale of ISAB to Ludoil Energy is stalled by Italian Golden Power's conditional-only approval, a pending antitrust review, and a 2024 Milan court seizure order over a EUR150m debt claim against GOI's share capital, not by the Lukoil OFAC licence track, which excludes ISAB entirely.Source: event_lookup
Source Material
OFAC General Licence 131F (28 May 2026)ISAB refinery