Lukoil will begin to shift its focus towards domestic production by selling off its Italian refinery complex, 2 oil industry sources told Reuters on September 20, 2017.
The move is part of the Russian firm’s drive to sell some of its foreign assets.
It’s not clear how much money Lukoil could get from a Litasco sale, as most oil and commodity traders are not listed.
According to Reuters, the book values of Litasco’s competitors range from $2 billion and $6 billion.
Lukoil VP Leonid Fedun declined to comment on the anticipated liquidations, saying only that «There has been interest towards all our foreign assets.»
But none of the offers have seriously interested shareholders so far, the senior official added.
The ISAB refining complex in Italy has 320,000-barrels per day of processing capacity and 3,700 thousand cubic meters of storage capacity.
Additional financial and technical information about ISAB has been made available to prospective investors to test the market’s appetite.
Part of the reason Lukoil is shifting its focus away from activities in Western Europe is the slew of sanctions levied against Russia by the EU.
The company’s other refineries are located in Romania, Bulgaria, and the Netherlands.
Lukoil bought a stake in ISAB back in 2008 and then became its sole owner in 2014, just as oil markets crashed dramatically.
Most of its final products are sold to Litasco for resale in global markets.