Costs are also a priority for LukOil’s other business on the local market, the Petrotel-LukOil refinery, which is to be closed between 1 December 2008 and 9 February 2009 for the modernization of its technology. During this time it will send home approximately one third of its employees, according to some sources.
“Cutting investments is a decision made at the headquarters of the LukOil group, which plans to direct its investments to where these are most efficient, considering the crisis. The company’s development program in Romania requires no further investments,” said Constantin Tampiza, General Manager of LukOil Romania, which administers a 300-gas station network.
Tampiza added that investments will also depend on the price of oil. Thus, at a $40 (€31.4) barrel price, the group’s investments will plunge to $4 billion (€3.14 bln) from $12 bln (€9.42 bln), while at a $70 (€54.96) barrel price investments will drop to $8 bln (€6.28 bln). A price of $80 (€62.81) per barrel will allow for LukOil Russia’s entire investment plan to be carried out.
