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TNK-BP to suspend crude oil deliveries to Lisichansk refinery

February 24, 2012, 17:07 UTC+3

TNK-BP decided to suspend crude oil deliveries to its refinery in Lisichansk, Ukraine

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MOSCOW, February 24 (Itar-Tass) —— TNK-BP decided to suspend crude oil deliveries to its refinery in Lisichansk, Ukraine, and to begin refinery repairs in March 2012, the company said on Friday.

The company said it observed a critical situation in the Ukrainian refinery sector for over a year and insisted on protective measures of the government, which would help at least preserve the operating plants.

Refinery in Ukraine remained an unprofitable business in the first quarter of this year, which had a significant influence on the general financial performance of TNK-BP. The Ukrainian government did not make decisions, which would allow local refineries to recover from the crisis. TNK-BP had $68 million losses in Ukraine in 2010; losses continued in 2011. Tolling operations stopped being attractive in the end of last year as Russia introduced new tax norms and made amendments concerning the Russian petroleum product market. The situation will hardly change soon.

Nevertheless, TNK-BP continues to fulfill petroleum delivery contracts.

The Lisichansk refinery will keep working until a final decision concerning the company policy on the Ukrainian market is made. The decision will depend exclusively on the company’s internal regulations.


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