Lukoil to build oil terminal in Spain

Lukoil's subsidiary, Litasco, and Spain's Meroil are poised to build one of the largest oil terminals in the Mediterranean Sea, the RBC Daily newspaper reported today. The companies have formed a joint venture in order to expand the capacity of Meroil's existing terminal. Investments are estimated at EUR 50m. The new terminal is expected to become the largest on Spain's coast and the second largest on the Iberian Peninsula. Hydrocarbons will be supplied to the domestic market and exported, while trade in oil products is likely to increase by 50 percent. According to the publication, the Russian oil giant first attempted to enter Spain's oil market two years ago. At that time, the company expressed interest in buying into Repsol, but the deal did not go through. The newspaper believes that the construction of transportation facilities in Europe may mark Lukoil's first step towards the future purchase of European production facilities and may help find a strategic investor to replace ConocoPhillips.