Greek Government Takes Over Exxon Refinery

The new Socialist government of Greece announced on January 27 that it was planning its first nationalization of a foreign corporation. The target: Exxon.

Unlike many nationalizations, however, this one appears to be proceeding without bitterness.

The Papendreou government is currently negotiating with Exxon to takeover the company's wholly-owned refinery and chemical units in the northern part of the country. Exxon's Thessaloniki Refining Company supplies 17% of the country's refined petroleum needs, but is set to operate at only 45% capacity this year, due to the world oil glut.

There is "significant overcapacity," explains Bill Smith, public relations officer for Exxon. "Every refinery in every company is being examined."

Exxon is "pleased" about the nationalization, says Ted Kariotis, commercial officer at the Greek embassy in Washington. It is "not a hostile" move, says Exxon's Smith, adding that "amicable negotiations are going on" ' over the terms of the takeover.

The Greek government wants to nationalize the refining and chemical companies for a "basic" reason, says Kariotis: "controlling the important resources of the economy." He adds, however, that the Exxon takeover' "does not mean the beginning of any widespread nationalization program."