The story
Origins and establishment
The company's legal history dates to 1960. Its modern operations developed from the Swedish petroleum businesses that were later consolidated into OK Petroleum. One of its principal facilities, the refinery near Lysekil, began operations in 1975 as a joint venture between the Swedish oil cooperative OK and the American oil company Texaco.
In 1986, OK Petroleum AB was formed through the merger of the industrial operations of OK with the state-owned Svenska Petroleum AB. The company operated refineries at Lysekil and Gothenburg, together with a nationwide fuel distribution network. Under the original ownership agreement, OK was allocated a 53% stake, the Swedish government 30%, and the Finnish state-owned oil company Neste 17%.
In 1987, Kooperativa Förbundet (KF) assumed responsibility for OK's ownership interest. By 1994, KF held 52% of OK Petroleum, while the Swedish government and Neste each held 24%.
In March 1994, OK Petroleum was acquired by Corral Petroleum Holdings, controlled by Ethiopian-Saudi businessman Mohammed al-Amoudi. The company adopted the name Preem Petroleum AB in 1996, when its retail operations were consolidated under the Preem brand, replacing the Texaco and OK identities at approximately 500 filling stations.
Refinery expansion and renewable fuels
In December 2003, Preem acquired Norsk Hydro's remaining 25% interest in the Scanraff refinery at Lysekil, gaining full ownership of the facility. The transaction followed approval by the European Commission.
On 20 October 2008, Preem Petroleum AB shortened its corporate name to Preem AB, reflecting its increasing emphasis on transport fuels and the development of renewable alternatives to conventional petroleum products.
Preem subsequently expanded its investments in renewable fuels. In 2008, it invested in SunPine, a Swedish producer of renewable feedstock derived from forestry residues. In 2010, the company began producing renewable diesel through the co-processing of renewable raw materials at its Gothenburg refinery. It introduced Preem Evolution Diesel in 2011 and expanded renewable diesel production capacity at Gothenburg in 2015.
In September 2020, Preem cancelled plans to construct a residue oil conversion complex at its Lysekil refinery. The project, which had faced environmental scrutiny, was abandoned after the company determined that changing economic conditions had undermined its commercial viability. Preem instead announced plans to prioritise investments in renewable fuel production.
Read the full text
Preem also pursued plans to gradually convert its refineries into biorefineries, shifting production from fossil-based fuels towards renewable fuels. While the Gothenburg refinery was already producing renewable diesel, a large-scale conversion project at Lysekil began in October 2020.
On 16 June 2025, Preem inaugurated its upgraded Synsat facility at Lysekil, increasing its annual renewable fuel production capacity by approximately 900,000 cubic metres. The investment enabled large-scale diesel production using up to 40% renewable feedstock.
Acquisition by VARO Energy
On 31 March 2025, Swiss-based VARO Energy announced an agreement to acquire Preem through the purchase of its parent company, Corral Petroleum Holdings AB. The transaction followed a strategic review of Corral's assets that had begun in late 2023.
Following regulatory approval, VARO completed the acquisition on 16 January 2026, combining the businesses under the newly established VAROPreem group. The combined company brought together Preem's Swedish refineries and distribution infrastructure with VARO's refining, trading and renewable energy operations across Europe.
On 9 February 2026, Preem AB was legally renamed VAROPreem Sverige AB, continuing as part of the VAROPreem group. The Preem name was retained for the company's Swedish filling station network, while its refining and other industrial operations became part of the group's wider business.
From Wikipedia’s article on Preem, shared under CC BY-SA 4.0.5