Carlyle-Vitol joint venture looks to buy European refining assets

LONDON, Oct 30 (Reuters) - A joint venture by private equity firm Carlyle Group and oil trader Vitol is looking to buy more midstream and downstream assets in Europe, including at least one refinery and storage facilities, the head of the venture said.

"We're looking at top-quartile refineries ... in good locations. They have to be the right size," Marcel van Poecke told reporters at the sidelines of the Oil and Money conference on Thursday.

Last December the private equity giant and the Swiss trading house formed Varo Energy to jointly own refining, storage and distribution assets in Switzerland and Germany in the Varo Energy fund.

Poor margins and government opposition to refinery closures and job losses have meant that owners find it difficult to sell plants.

Van Poecke declined to specify how many plants were being considered or where they might be located.

He added that Varo was also looking at buying storage terminals for distribution of products from its own refineries to end-consumers, rather than for third parties.

Varo bought the Bayernoil refinery in Germany from OMV and owns the Cressier plant in Switzerland, which was previously owned by Petroplus, the refining company van Poecke founded that later went bankrupt.

In an earlier panel session at the conference, van Poecke emphasised the difficulties of selling refineries in Europe.

"(In) refining and marketing, it's almost impossible to sell a refinery in the market. You have to give it away. There's one American buyer who wants to buy, but you have to literally give him money to buy."

When speaking to reporters following the panel, he declined to give more detail on the U.S. buyer.

U.S. national Gary Klesch has said he is seeking to buy the Milford Haven refinery in Wales, and the Welsh government has confirmed that it is in talks about possible support to aid a transaction. (Reporting by Simon Falush, additional reporting by Claire Milhench; editing by Jane Baird)