Russian oil group LukOil has been granted financing of 82 million dollars (63 million euros) by the investment arm of the World Bank, the International Finance Corporation, in order to support the retooling process at the Petrotel Ploiesti refinery.
The retooling project will enable production of Euro-3 and Euro-4 fuels, as well as help reduce gas pollution and power consumption at the refinery.
LukOil entered the Romanian market in 1998 after taking over the majority stake in the Petrotel Ploiesti refinery from the Romanian state.
The refinery was closed in 2001 to allow for modernisation works, with LukOil pumping funds into the rapid expansion of its filling stations network.
After its reopening last October, Petrotel had an annual refining capacity in the region of 2.4 million tonnes of crude oil, compared with 3.5 million tonnes at the time of its closure.
LukOil''s investment in Romania amounts to over 280 million euros (around 367 million dollars).
From this amount, 200 million euros have been directed towards expanding the distribution network, while the remaining amount was allotted to modernisation of the refinery, including around 8.5 million euros that went on an environmental protection programme.
Three weeks ago LukOil announced that its Romanian refinery would start delivering oil products to its Hungarian filling station network as of this April.
LukOil Downstream Hungary, a branch of the Russian group, acquired 15 filling stations from the Austrian company AVA, increasing its network size to 26. The company now covers around 5% of the Hungarian market, company officials say.
By supplying fuel, the Ploiesti refinery will also support the expansion of the LukOil filling station networks in Hungary and the Republic of Moldova.
Currently the company operates 300 petrol stations and 8 distribution centres.
LukOil''s plans for the Romanian market include expansion of the territorial network to 350 stations. LukOil''s companies in Romania have around 5,000 employees, 1,200 of which work at the Petrotel refinery.
LukOil has also expressed an interest in purchasing the Oltchim Ramnicu Valcea chemical plant, together with its raw materials source, the Arpechim Pitesti petrochemical complex.
alexandru.cerchez@zf.ro
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