Lukoil to sell Romanian marketing operations to MOL – sources

By bne IntelliNews March 17, 2014

Russian oil company Lukoil will gradually transfer to Hungarian peer MOL its Romanian marketing operations, including the car fuel deposits, Adevarul daily announced, quoting unofficial sources.

In a first stage, Lukoil will make preferential deliveries to MOL under a strategic partnership and afterwards the Russian company will sell the regional warehouses to MOL. While MOL holds a 13% shares on the car fuel market, Lukoil is the third largest player with a 22% share.

The daily does not comment on the fate of the Lukoil refinery in Romania. The refinery, with a capacity of 2.4mn tonnes of crude oil per year, is the third largest in Romania - among a total of three refineries. It has been running on constant losses, but this is not particularly relevant since refining is a thin-margin segment, while the profits are typically earned in exploration and production.

Rumours about Lukoil closing down its Romanian refinery have been circulated for years, but the refinery's shareholders rejected such an option in December. Still, with the Bulgarian refinery in Burgas coming online next year at higher capacity, the rumours are expected to gain more credibility.

Lukoil has re-assigned to the Romanian managing team Anatolie Zolotko, formerly a manager in Hungary, the sources explained. Separately, Lukoil has reportedly adjusted its Romanian regional fuel deposits to MOL standards, they added.

LUKOIL FOCUSES ON BULGARIA AND RENEWABLE: Lukoil will focus on the Bulgarian petroleum products market, once the Burgas refinery re-opens in 2015 after a large-scale upgrade, the daily furthers. Lukoil Neftochim Burgas plans to complete the refinery modernisation by the end of the year, with testing set to begin in 2015, making it only the 10th hydrocracking unit in the world and the largest in Eastern Europe. Separately, Lukoil will expand its renewable energy production facilities.

Related Articles

Romanian president rejects justice minister’s request to dismiss head of anti-corruption body

Romanian President Klaus Iohannis said on April 16 he is rejecting a request from the justice minister to dismiss the head of the National Anticorruption Directorate (DNA), Laura Codruta Kovesi. ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Romania’s Restart Energy raised €30mn via ICO

Romanian electricity and gas supplier Restart Energy raised €30mn in cryptocurrencies by issuing 400mn MWAT tokens in an Initial Cryptocurrency Issue (OCO) aimed at financing a blockchain-based ... more