Irving Oil's pledge to continue "full operation" of Ireland's only oil refinery and maintain its existing workforce is welcome news in the city of Cork, where American multinational energy company Phillips 66 has been looking to divest the asset for several years.

"It's obviously very welcome indeed that those jobs seem to be secure into the future and possibly [we'll see] further investment and expansion," said David Stanton, the local MP for Cork East.

The Whitegate refinery used to be owned by the state, but was privatized in 2001 and sold to Phillips 66.

Its obligation to maintain the asset expired last month.

There had been concerns that because it was a small refinery, it wouldn't remain operational or that a new bidder might close it. - Peter O'Dwyer, Irish Examiner

Whitegate, built in 1959, employs about 160 people as well as many contract personnel.

According to the Irish Examiner, the refinery had been losing money at a rate of $58 million US in 2013 and $280 million US in 2014.

"The future of the refinery has been a hot topic, both locally and nationally," business reporter Peter O'Dwyer told CBC News on Wednesday.

"There had been concerns that because it was a small refinery, it wouldn't remain operational or that a new bidder might close it."

"Overall, the announcement today is as positive as people could have hoped for," said O'Dwyer, who's been following developments for months.

'Compelling' opportunity

Irving Oil issued a written news release on Wednesday, saying the acquisition would enable the company to expand its business across the Atlantic basin to gain valued customers in Ireland.

"On all fronts, we've been impressed by the Whitegate refinery and its people," said Mark Sherman, vice-president and chief operating officer of Irving Oil.

"The operational performance of Whitegate is strong, it has well established and diligent maintenance schedules and we are struck by the positive working environment seen amongst its people," he said.

"In many respects, our refineries share common qualities and it's one of the reasons we found this opportunity so compelling."

Whitegate's refining capacity is 71,000 barrels per day. That's less than a third of the output of the refinery in Saint John, which is capable of producing 300,000 barrels per day.

Andrew Lipow, president of Lipow Oil consultants in Houston, Texas, says the slumped market may have factored into Irving Oil's decision. (Submitted) On global markets, crude oil prices have slumped dramatically from over $100 US per barrel in June of 2014 to under $50 US per barrel currently.

"Irving may feel now is the time to buy a refinery as prices are depressed," said Andrew Lipow, president of Lipow Oil Associates in Houston, Texas.

"They may feel that they can operate it better or at lower cost."

Lipow said there could be synergies between the Ireland refinery and the one in Saint John.

"The Saint John refinery does export a lot of diesel to the U.S. This now gives them an entrance into the Irish market, which does import diesel fuel," said Lipow.

"On the other hand, the Whitegate refinery does produce some feed stocks and blend stocks that may be appropriate to bring into the Saint John refinery."

"There are some bottom-of-the-barrel products that the Whitegate refinery produces that would fit into the Saint John refinery process."

Irving Oil could not immediately be reached for comment.

The company said the transaction is expected to close by the end of the third quarter, once all conditions of sale have been met and that the company will share more information at that time.