• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 59 mins China wields coronavirus to nationalize American-owned carmaker
  • 3 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 6 hours The Truth about Chinese and Indian Engineering
  • 6 hours China's impending economic meltdown
  • 9 hours Why Oil could hit $100
  • 23 hours The World is Facing a Solar Panel Waste Problem
  • 3 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 16 hours Pompeo upsets China; oil & gas prices to fall
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 11 hours Brent above $45. Holding breath for $50??
  • 7 hours Open letter from Politico about US-russian relations
  • 2 days Sell Natural Gas Benefits to Grow the Market!
  • 1 day Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Rational analysis of CV19 from Harvard Medical School
Tesla Prepares Massive Retail Expansion Worldwide

Tesla Prepares Massive Retail Expansion Worldwide

Tesla looks to significantly expand…

Rig Count In Cowboy State Falls To Zero

Rig Count In Cowboy State Falls To Zero

The last active drilling rig…

Russia’s Lukoil Studies Selling Ukhta Refinery, Filling Stations

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