The industry publication cited Lukoil’s vice president Vladimir Nekrasov, as saying: We understand that we need at least a couple of refineries in Europe. We are considering a specific proposal (from Conoco), to buy and modernize (the plant).
PetrolWorld reported that although Lukoil has four Russian refineries and three in the Ukraine, Bulgaria and Romania, the company has not been successful in its attempts to expand is downstream footprint throughout Europe. Indeed, Lukoil has recently failed in its attempts to acquire refineries in Lithuania, Poland and Kuwait.
PetrolWorld reported that as a result, Lukoil is still looking to buy at least 200,000 barrels per day of new refining capacity in Europe.
In addition, Lukoil’s CEO Vagit Alekperov has reportedly said that the company is also in talks with ConocoPhillips about helping the company to upgrade its Wilhelmshaven refining facility in Germany. According to PetrolWorld, however, Conoco’s CEO Jim Mulva has said that this is unlikely, as rising costs have forced the group, a major shareholder in Lukoil, to delay the work until 2008.
According to PetrolWorld, Mr Nekrasov has also told reporters that Lukoil is looking to increase the number of service stations it owns in Turkey from the current 12 to between 50 and 100. Lukoil is also reportedly hoping to buy a second product storage facility in Antalya, Turkey.
