Lukoil (RTS: LKOH), which said earlier this week it had agreed to buy into an oil refinery in Sicily, is still interested in other downstream assets in Europe, Interfax reports.
"Our latest deal does not mean we aren't interested in other refineries in Europe," Leonid Fedun, the Russian oil major's vice president, told reporters.
"We hope to bring you some good news by the end of the year," he said.
Lukoil currently has 60 million tonnes of refinery throughput capacity. Fedun said it needed 85 million tonnes to achieve a balance in refining at current rates of oil production.
Lukoil and Italy's ERG signed an agreement to form a joint venture to operate the ISAB refinery complex in Priolo, Sicily. Lukoil will acquire a 49% stake in the joint venture for a cash consideration of EUR 1.347 billion, excluding inventory. ERG will retain 51%. The transaction structure provides Lukoil with the possibility to increase its stake in future.
The ISAB refinery complex is one of the largest in the region and is well positioned to meet the growing middle distillate demand in Europe (mainly kerosene and diesel fuel). The ISAB refinery has the flexibility to process crudes such as Urals, and Lukoil said it intended