Russian oil group LukOil, ranking third on the Romanian market, plans to invest in electricity production to cover its own consumption and to enter the domestic power market.
LukOil, which derived turnover worth 1.3 billion euros in Romania in 2005, helped Petrotel Ploiesti refinery get rid of losses after five years.
"The refinery in the first half of this year posted revenues worth $622 million (496.3 million euros) and broke even," says Constantin Tampiza, general manager with LukOil Romania.
Tampiza took the reigns of the LukOil business in Romania in April 2005, after the former manager of the downstream unit, Nicolae Ciornii, was promoted to the Russian group's management structure. According to the latest information, Tampiza also coordinates the units in Serbia and Hungary beside the Russian group's activities in Romania.
LukOil, which entered the domestic market in 1998 by acquiring Petrotel refinery, has seen strong growth in recent years. The Russians have invested over half a billion dollars and now hold one of the largest refineries in Romania and a network made up of some 300 filling stations in their portfolio.
Moreover, now the Russian group is also eyeing the electrical power market, where it may expand its business over the following period.
LukOil's strategy will have the Petrotel refinery supplied with self-produced thermal and electrical power.
To that end, the Russians have set up a new company, which is a separate legal entity with its own management, Energy&Gas Romania.
According to the above-quoted source, the plans of the newly founded company in terms of production and supply go beyond the gates of the refinery and target the domestic power market. After taking over Petrotel in 1998, LukOil operated the refinery until 2001, when it halted its activities. Subsequently, the Russians began an ext
