Russian group LukOil will invest approximately $150 million on the Romanian market this year, with the bulk of investments allocated to the expansion of its gas station network from 90 to 200 stations, according to company officials.
The increased number of gas stations will create about 1,000 jobs this year, group officials say. The goal is to have 300 stations up and running by the end of 2004.
Works on retooling LukOil's Romanian refinery, Petrotel Ploiesti, closed since last April, are also scheduled to begin this year. LukOil's investments in the refinery will reach some $60 million throughout 2003-2004 and are aimed at modernising the refinery's installations so that it could produce Euro 3 and Euro 4 compliant fuels.
Officials of LukOil Downstream Romania, the group's fuel distribution division on the Romanian market, were estimating to make some $180 million turnover last year. LukOil Downstream Romania's turnover comprises both sales through the gas stations network (retail) and sales from its own storage facilities (wholesale).
As regards the Romanian fuel retail market, SNP Petrom operates an about 580 gas station network, followed by Rompetrol (circa 150 stations), LukOil (more than 90 stations), Shell (81), OMV (49), MOL (47), Agip (20), with the remaining approximately 600 stations run by private operators, according to latest market data.
Car fuel sales totalled approximately $2bn last year, as estimates show.
The Russian group entered the Romanian market five years ago, when it bought 51% in Petrotel Ploiesti refinery. The deal was worth about $300 million, the price of the shares and the investments pledged in the privatisation contract included.
The Petrotel Refinery can process up to 3.5 million tonnes a year. Although it is now closed, the group gets the necessary oil products supply from its two refineries near Romania, that is Neftochim Burgas (Bulgaria) and Odessa (Ukraine).
The latest info available shows Petrotel to have registered 119.8bn ROL in net revenues at the end of June last year, while net losses reached 132bn ROL. It was employing 688 people, that is less than one quarter the staff it had about twelve months before. Approximately 1,500 employees will resume work upon reopening of the refinery, according to the latest official statements. Petrotel is traded on RASDAQ, having closed at 6,500 ROL/share during the latest trading session. If calculated at this price, the market capitalisation reaches $1.4 million.
LukOil's retail sales in Romania amounted to some $28 million in 2001, given that its network was comprised of only 20 stations back then.
LukOil is one of the most powerful Russian oil groups. Its oil reserves are estimated at more than two billion tonnes.
The group employs more than 130,000 people in Russia and in the 25 countries where it operates. It covers 20% of the oil production and 18% of the oil processing in Russia. Also, it has more than 3,950 gas stations in Russia and abroad.
adrian.mirsanu@zf.ro
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