Sources say that commodity traders will submit bids by May for Italy's IP.

Two sources confirmed on Thursday that global commodity traders Glencore and Gunvor were considering the possibility of buying oil refiner Italiana Petroli API group.

State Oil Company of Azerbaijan is also interested in the asset, two sources with knowledge of the transaction said.

Glencore, Gunvor, and IP have declined to comment. SOCAR did not respond to a request for comment.

IP, owned by Brachetti Peretti, an Italian family, has a refining capacity totaling around 200,000 barrels a day. It also owns a network consisting of 4,600 fuel station.

A potential IP deal would allow international commodity groups to play a greater role in Italy's refining industry, while private investors withdraw as profit margins become more volatile.

Trafigura, a global commodity trader, is part of a consortium that will buy the ISAB refinery in Sicily, with a 320,000 bpd production capacity, from Russia's Lukoil by 2023.

Petraco, a Swiss trading house, also owns a stake in Iplom which operates the Busalla refinery (which produces 40,000 barrels per day) near Genoa.

This fits in with a larger picture where major trading houses are buying up assets from independent and oil majors alike that would otherwise look to convert their conventional refining assets to biorefining or close them.

IP is the owner of the Ancona refinery, the SARPOM refinery near Novara in Trecate and a tolling agreement for the Alma refinery at Ravenna.

Trecate is a fuel producer, while the two other plants produce bitumen.

Italian media reported first that IP owners were considering selling the company but did not give details about the timeline of the sale process. Reporting by Francesca Landini in Milan and Valentina Za, Robert Harvey in London. Editing by David Evans and Ed Osmond.

(source: Reuters)