BP-TNK stops the negotiations about Lisichansky oil-refining plant until the transaction with Rosneft is completed

BP-TNK stopped its negotiations about possible sale of the Lisichansky oil-refining plant in the Ukraine due to the forthcoming transaction with Rosneft, the company’s financial director Jonathan Muir reported on Thursday.

He noted, this is normal practice when dealing with mergers.

At the end of 2012 it was reported, Ukrainian businessman Dmitry Firtash (the owner of Group DF uniting chemical and gas-supply assets) was one of the possible buyers of the plant.

In March 2012, the management of BP-TNK decided to stop the delivery of raw materials to Lisichansky oil-refining plant due to the unprofitability of oil processing in Ukraine and stopped the plant for an unscheduled repair. In May, Firtash claimed he was going to purchase an oil-refining plant in Ukraine to found petrochemical production.

The Ukrainian business of BP-TNK Group consists of BP-TNK Commerce LLC (the management centre, wholesale trade at inner and outer markets), Kersher LLC JV (oil products retail) and LINIK CJSC operating Lisichansky plant. BP-TNK previously claimed that stopping of oil processing wouldn’t result in reduction of retailing in Ukraine, as it buys fuel for its filling stations at Ukrainian domestic market.

Source: http://www.rusenergy.com/ru/news/news.php?id=64930

Translated by Alexandra Utyasheva