Italian refiner ERG said Tuesday that it would sell a 20% stake in its ISAB refinery joint venture to Russia-based partner Lukoil.
ERG said its board decided to exercise a put option for the sale.
After the deal closes, Italy's ERG will own 20% of the refinery, with Lukoil owning the other 80%.
"This transaction allows ERG to downsize its presence in the refining business against a background of continuing crisis," ERG chief executive Alessandro Garrone said.
The companies agreed to the ISAB venture in 2008, under which the Sicily-based refinery has a capacity of roughly 320,000 bpd.
The deal is expected to close in the second quarter of 2012, Lukoil officials said.
The transaction amount will approach €400 million, excluding inventory, according to Lukoil.