LUKOIL group estimates investments necessary for modernization of Bourgas (Bulgaria) and Ploesti (Romania) refineries to cost $667 million, the company’s report reads according to AK&M. Since Bulgaria and Romania are members of European Union from 2007, LUKOIL Neftochim Bourgas (Bourgas refinery) and Petrotel-LUKOIL (Ploesti refinery) should undergo modernization of oil-refining equipment to conform the requirements EU legislation regulating quality of oil products and environment protection. According to LUKOIL these requirements are stricter as compared with existing norms of both Bulgarian and Romanian legislation. The group estimates the investments necessary for modernization of oil-refining equipment to $607 million and $60 million correspondingly, the report reads.
LUKOIL acquired a 51% stake in Petrotel refinery for $53.2 million in February 1998. As of today the Company holds 93% of shares. As of beginning 2005 the company’s investments into refinery modernization amounted to $120.7 million. The modernization is to increase refining efficiency from 87.9% to 94.8%.