CEO says Lukoil may finish sale of Sicily-based plant in 2022

ROME, Dec 5 (PRIME) -- The negotiations to sell Russian oil company Lukoil’s Sicily-based ISAB crude refinery are at an advanced stage and can be finished until the end of 2022, CEO Yevgeny Manyakhin told Italian business newspaper IlSole 24Ore on Monday.

“As I have said, the talks are underway and if there are negotiations, there is a sales idea. We believe that a sales and purchase agreement can be signed soon. Probably, until the end of this year,” he said.

Manyakhin also said that the refinery is ready to operate smoothly in the new market conditions of an oil price cap on Russian oil, imposed from Monday.

“Our reserves are sufficient to provide the plant’s operations for several months. I should say that oil mostly arrives not from Russia already now,” he said.

The CEO said that introduction of external management headed by Italy’s Eni can prevent the sale, and added that the plant’s administration does not see the option as either fair or useful.

“For us, management of the refinery is beyond the state’s competence. Such a decision can result in the shutdown of the plant, and create problems for its sale to a new owner. That is why we hope that the Italian government will analyze the situation thoroughly before making such decisions,” he said.

The Financial Times reported earlier in December citing Italy’s Economic Development Minister Adolfo Urso that the state would come up with a solution for the Lukoil refinery by mid-December. Urso also said nationalization was an option.

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