4-5 candidates for purchase of Lysychansk oil refinery, winner has not been selected, says businessman Firtash
Around four or five companies are in talks with Russia’s TNK-BP on the acquisition of Lysychansk oil refinery (private joint-stock company LINIK, Luhansk region), and the winner has not yet been selected, Ukrainian businessman Dmytro Firtash told Interfax-Ukraine last week.
"We [Group DF] are participating [in talks]. No one has told us who won. Among the bidders is not only the company you named [Gas Ukraine 2009], a Kazakh company [is participating] – four or five companies are now participating in the process. None of the [bid] packages have been disclosed – no one knows anything," he said.
The businessman said that the change in the structure of owners of TNK-BP added to the vagueness of the negotiations.
"Yesterday an announcement was also made [that Rosneft had officially submitted an application to buy a share in TNK-BP]. This could also play a key role and change the whole situation. They could stop talks, they could stop the sale, or maybe not. I hope that next week we'll have the explanation: we're working or not. I even don't say who won. The issue is if there is an issue for discussion?” he said.
Firtash said that along with Lysychansk oil refinery, Group DF is eyeing other oil refining assets.
"As for us: we have other options, and we're working with them – we never create the situation of being dependent on one company. We simultaneously, in at least two places, are holding talks. We don't hide this – both sides knew about this initially. We have our own understanding of the price," he said.
Firtash said that the general situation in the oil refining sector in Ukraine is unfavorable, so the businessman will try to improve the conditions of operation of oil refineries, in particular, via the Federation of Employers of Ukraine headed by Firtash.
"Today oil refining is not a gift store. Why is LINIK idle? It will lose at least $45-50 million per month today – only on the difference in the price. We should speak with the state at another level – as we're doing via the Federation of Employers of Ukraine," the businessman said.
Earlier Forbes Ukraine, referring to a market player, reported that Gas Ukraine 2009 (Simferopol, Crimea) had won the rights for the acquisition of Lysychansk oil refinery.
The press service of TNK-BP did not comment on the information.
The Lysychansk oil refinery announced the suspension of its petroleum product output operations and the completion of preparatory work to transfer to repair mode on March 15.
Previously, operations at the refinery were exclusively supported by tolling and supplying petroleum products to Russia. Tolling began to lose its economic appeal at the end of 2011, when Russia imposed new tax norms and changes to the Russian petroleum products market.