Bloomberg: Lukoil may restructure Litasco and sell refineries in Italy

MOSCOW, 18 Oct – PRIME. PJSC Lukoil is considering restructuring its Litasco oil trading unit and selling its ISAB refinery in Italy to limit the impact of sanctions, Bloomberg reported, citing sources familiar with the situation.

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“The largest private oil company in Russia (Lukoil” – ed.) may restructure its trading division Litasco SA, creating two divisions, one of which will be based in Geneva and the other in Dubai, “the agency writes, citing sources.

There have been previous reports in the media that Litasco has moved some of its operations to Dubai in the past few months and is preparing to relocate its headquarters there.

Bloomberg notes that the company’s Geneva arm, which will be called Litasco West, will continue to handle non-Russian oil shipments to Europe and operate refineries in Bulgaria and Romania. At the same time, according to the agency, a unit in Dubai, known as Litasco Middle East, will be responsible for trading Russian oil and managing operations in Asia.

Quoting his sources, Bloomberg writes that Lukoil, which itself is not under EU sanctions, is also exploring the possibility of selling its ISAB refinery located in Sicily. According to Bloomberg, Onex Holding and Crossbridge Energy Partners are showing interest in buying a refinery with a processing capacity of 300,000 barrels per day. The agency notes that Russian Urals oil may stop flowing to the ISAB plant from December 5, when the EU embargo on offshore shipments of Russian crude oil comes into force.

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Litasco (Lukoil International Trading and Supply Company) is the sole operator of the international trade of the Lukoil group, carries out all its deliveries and trading operations abroad. Litasco includes subsidiaries and branches in the USA, the Netherlands, Kazakhstan and other countries.