• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 3 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 42 mins Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 1 day The Quick Read On MBS's Tour of Pakistan, India And China
  • 1 day BMW to add 2,000 more jobs at Dingolfing plant
  • 1 day Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 1 day Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 2 hours An expected? Saudi Arabia Would Need Oil At $80-$85 A Barrel To Balance Budget
  • 10 hours Washington Eyes Crackdown On OPEC
  • 1 day Saudi A to Splash $100 Bln on India
  • 2 days NEW FERUKA REFINERY
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 10 hours Can the World Survive without Saudi Oil?
  • 1 day Venezuela: Nicolas Maduro closes border with Brazil
Renewables Already Limit Upside For Oil

Renewables Already Limit Upside For Oil

Oil prices clinched onto gains…

Russia’s Lukoil Studies Selling Ukhta Refinery, Filling Stations

Refinery

Lukoil, Russia’s second-biggest oil producer, will discuss later this year the possible sale of its Ukhta refinery and one-third of its filling stations in Russia, according to Vladimir Nekrasov, the company’s first vice president for refining.

Lukoil is expected to make a final decision on the possible sale in the fall, Nekrasov told reporters, as quoted by Reuters.

Lukoil’s investment committee will review the proposal in July, and the final decision is expected to be made in October or November this year, Russian media quoted Nekrasov as saying.

Last week, Russian news outlet RBC reported that Lukoil is looking for a buyer for its Ukhta refinery—which has an annual capacity of 4 million tons—and is reportedly ready to sell it at a discount to its market price.

Lukoil is ready to sell Ukhta refinery—together with the filling stations or separately—and would invest the proceeds in upstream projects in Russia, a source at Lukoil told RBC. The profitability of the Ukhta refinery has shrunk due to higher taxes and the general downturn in the industry amid the oil price crash.

Some analysts reckon the refinery could cost no more than $50 million, but RBC analysts believe that the price of the asset would greatly depend on additional terms of a possible deal such as supply of oil or obligation to supply oil products.

Related: Tanker Traffic Points At Much Tighter Oil Markets

According to RBC sources, the most likely candidates to buy the refinery include Russian companies Russneft (not to be confused with Rosneft), ForteInvest, and New Stream Group.

In June last year, Lukoil’s chief executive Vagit Alekperov told Reuters in an interview that the company might consider spinning off or selling its downstream assets in Europe to focus on exploration. Lukoil is shifting its focus to upstream assets and development both in Russia and abroad, Alekperov noted back then.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News